Blackstone Partnership Closes On $2B Industrial REIT Deal

Most of Pure Industrial REIT’s portfolio is located in Canada but it does own a handful of logistics and warehouse facilities in the US.

Pure Industrial’s sole California holding

NEW YORK–Earlier this year Blackstone Property Partners and Ivanhoé Cambridge made a $US 2 billion cash offer for Canadian REIT Pure Industrial Real Estate Trust, which owns industrial properties across North America. The deal has closed, with Blackstone Property Partners and Ivanhoé Cambridge owning, respectively, 62% and 38% of the trust.

Most of Pure Industrial’s portfolio is located in Canada but the REIT does own some assets in the US. In California it has a fully-leased 211,495-square foot facility in the City of Industry, an industrial submarket 20 miles east of Los Angeles. It owns 5731 Premier Park, a 119,165-square foot warehouse in West Palm Beach, Fla., a newly-constructed logistics facility in Baton Rouge, La., five assets in Georgia, two in Illinois, two in New Jersey, six in North Carolina and four in Texas.

The deal is another REIT being taken private by the equity giant albeit in this case, Pure Industrial delisted from the Toronto Stock Exchange.

Blackstone is gobbling up industrial assets, spending billions to amass a portfolio in this asset class. In this month alone it has closed on a  $347.2 million portfolio in the Mid-Atlantic and made an offer to acquire Gramercy Property Trust for $7.6 billion.