NEW YORK CITY-The Blackstone Group is on the verge of scooping up 180 ProLogis industrial properties for $1 billion, according to the Wall Street Journal. The pending deal entails more than 20 million square feet of warehouse property across the US, the WSJ reported Thursday, citing people familiar with the matter.
Earlier this year, the locally-based private equity giant agreed to buy an 80% stake in a joint venture managed by Denver-based ProLogis, a deal that involves 17 million square feet of US warehouse space. Blackstone is paying $105 million in that deal and assuming $512 million of debt.
One of the world’s largest industrial landlords, ProLogis has been working for the past few years to cut down a mountain of debt taken on during its expansion at the height of the market. Fitch Ratings removed ProLogis’ investment-grade rating this summer, in part because it wasn’t clear how the company would pay down that debt.
Click here for the WSJ article.
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