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Blackstone Continues Renewed Industrial Push with Closing of PIRET Deal
Connect Industrial is coming up on July 11 in Chicago. Here’s a link for more information about the conference and to register.
Having divested its U.S. industrial platform IndCor to a venture including GLP for $8.1 billion in 2015, the Blackstone Group is continuing a renewed ramping-up of its presence in the sector. Late last week, the asset management giant closed on its acquisition of Vancouver, BC-based Pure Industrial Real Estate Trust (PIRET) in a $3.8-billion deal.
When Connect Media first reported the Pure Industrial deal in early January, an affiliate of Blackstone Property Partners was the sole buyer. Subsequently, Blackstone brought in Ivanhoé Cambridge, the real estate arm of Canadian fund manager Caisse de dépôt et placement du Québec, as a partner. Blackstone now owns 62% of the REIT, which has been delisted from the Toronto Stock Exchange, while Ivanhoé owns 38%.
Although PIRET’s properties are concentrated mainly in Canada, it does have a presence in some of the leading U.S. industrial markets as well. Largest of these by square footage is a two-building complex (pictured) in the Cedar Port Distribution Park in Baytown, TX, within the Houston metro area. PIRET also has properties in the Dallas, Chicago, Philadelphia, San Antonio, Los Angeles, South Florida and New Orleans markets.
In March, Blackstone made another large-scale industrial play, this one focused strictly on the U.S. market. Its Blackstone Real Estate Income Trust acquired the Canyon Industrial Portfolio, a 22-million-square-foot portfolio, for roughly $1.8 billion.
The Canyon portfolio is comprised of 146 last-mile infill warehouses and distribution buildings, with major concentrations in the Chicago, Dallas, Baltimore/Washington DC, Los Angeles/Inland Empire and South/Central Florida markets.
Later in March, Blackstone announced a more regional acquisition, this one focused on the DC metro area. Its Blackstone Real Estate Partners VIII said it would buy 41 industrial warehouses and two adjacent lots from Jacksonville-based FRP Holdings, Inc. for $358.9 million. The transaction is expected to close by the third quarter of 2018.
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- ◦Sale/Acquisition
