US private equity manager Blackstone is acquiring logistics assets from three funds under Singapore-based GLP for US$18.7 billion, in what is being billed as the world’s biggest private real estate deal.
It involves Blackstone Real Estate Partners, a global opportunistic fund, acquiring 115 million square feet of real estate for $13.4 billion, and Blackstone Real Estate Income Trust purchasing another 64 million square feet of property for $5.3 billion, from the GLP funds.
This “will be the largest-ever private real estate transaction globally”, GLP and Blackstone say in a joint statement on June 2.
The assets are located in the US. The deal will almost double Blackstone’s existing US logistics portfolio, and increase the total logistics assets it has acquired globally since 2010 to more than 930 million square feet.
A surging growth in e-commerce is driving demand for investments in logistics infrastructure and real estate assets such as warehouses and distribution centres.
According to Ken Caplan, global co-head of Blackstone Real Estate, logistics is the company’s “highest conviction global investment theme today”, and it is looking to build on its existing portfolio to meet demand.
“Our global scale and ability to leverage differentiated investment strategies allows us to provide a one-stop solution for GLP’s high quality portfolio,” Mr. Caplan says in the statement.
The deal is expected to close in the third quarter of this year, a GLP spokesperson tells Asia Asset Management.
GLP, an investment manager that is focused on logistics property, has around $64 billion of total assets globally.
Blackstone’s real estate business currently has $140 billion of investor capital under management.