9/30/2019, 1:29 PM (Source: TeleTrader)
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Blackstone to buy Colony's warehouses for $5.9B

Blackstone Group Inc. is buying Colony Capital Inc.'s subsidiary which operates the investment firm's logistics assets in the United States for $5.9 billion, the two company's announced on Monday.

The acquisition includes 60 million square feet across 465 warehouses concentrated mostly in Dallas, Atlanta, Florida, New Jersey, and California. Additionally, Blackstone will obtain Colony's 51% stake in a four million-square-foot portfolio of bulk-distribution warehouses, larger facilities further outside urban centers.

"This acquisition of high-quality warehouses demonstrates our continued strong conviction in logistics and positive e-commerce trends. As retailers continue to shorten delivery times and expand their last-mile footprints, we believe warehouses in dense population centers will continue to experience outsized demand growth," Nadeem Meghji, head of Real Estate Americas at Blackstone stated in the press release.

This is Blackstone's second major acquisition of a warehouse network this year, as the financial services giant purchased GLD for $18 billion earlier in June.

Breaking the News / MD