Prologis Inc PLD agreed to acquire some 14 million square-feet of industrial properties from Blackstone Inc BX for $3.1 billion in cash.
The deal cost represents about a 4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents.
"These high-quality properties are complementary to our portfolio and fit perfectly into our long-term strategic plan for growth. The acquisition demonstrates our unique ability to add significant scale to our portfolio - expanding customer relationships and increasing opportunities for our growing Essentials platform." said Prologis president Dan Letter.
Over the last 11 years, Prologis and Blackstone have concluded over a dozen transactions together.
The transaction is expected to close by the end of the second quarter.
In April, the logistics real estate firm reported first-quarter 2023 revenues of $1.77 billion, up 45%, on a continued average solid occupancy rate.
Core funds from operations (FFO) rose 12% Y/Y to $1.22 per share in the first quarter.
Price Action: PLD shares are trading higher by 0.77% at $117.80 premarket on the last check Monday.
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