Blackstone Real Estate Income Trust, Inc. and LBA Logistics have announced the recapitalization of two industrial portfolios that are owned by LBA that comprise of USD 1.6 Billion of gross value. BREIT has acquired 60% combined interest across both portfolios as LBA’s investment fund and investors have retained the balance. The portfolios harbor a total of 71 high quality assets that sum up to 9.5 million square feet and are 95% occupied. Majority of the assets are located in last mile locations within West Coast markets with most of them in Seattle and California.
Brian Kim, Head of Acquisitions & Capital Markets for BREIT, said, “This transaction represents a compelling opportunity to acquire high-quality last mile industrial assets on behalf of our BREIT investors. Logistics is one of our highest conviction investment themes globally, and this acquisition illustrates BREIT’s continued momentum executing on exciting opportunities with significant growth potential. LBA Logistics is a best-in-class operator in the logistics sector, and we look forward to expanding our partnership with them.”
Phil Belling, LBA’s Managing Partner, added, “These assets are benefitting from the strong fundamentals in the industrial sector, which we believe will continue to be attractive over the long-term. We are excited to grow our partnership with Blackstone and look forward to continuing to create value for our investors in the logistics space.”
On close of this transaction, over 90% of BREIT’s real estate investments will be in industrial, multifamily and net leased assets as industrial represents over 35% of BREIT’s portfolio.