The Blackstone Group L.P. (NYSE: BX) announced that it had entered into an agreement with Global Partners LP (NYSE: GLP) to acquire assets from three of GLP’s U.S. funds for USD 18.7 Billion. Blackstone’s U.S. industrial footprint will almost double in size as a result.
The transaction amounts to 179 million sq.ft. of infill-logistics assets.
Blackstone Real Estate’s global opportunistic BREP strategy will acquire 115 million sq.ft. for USD 13.4 Billion and its income-oriented, non-listed REIT, Blackstone Real Estate Income Trust (BREIT), will acquire 64 million sq.ft. for USD 5.3 Billion. According to the Company, this agreement is the largest global private real-estate transaction. The agreement indicates two trends, demand for logistics related to real estate and a slowdown in commercial real estate.The trends can be attributed to the exponential growth of online shopping and a greater demand for “last mile” delivery assets.
After the transaction is completed, Blackstone will have acquired almost 1 billion sq. ft. of logistics since 2010. GLP will also continue to be an industry giant with more than 500 million sq.ft. of real estate under their control globally. “Logistics is our highest conviction global investment theme today, and we look forward to building on our existing portfolio to meet the growing e-commerce demand. Our global scale and ability to leverage differentiated investment strategies allowed us to provide a one-stop solution for GLP’s high quality portfolio,” said Ken Caplan, Global Co-Head of Blackstone Real Estate.