Blackstone Real Estate Income Trust (BREIT) and LBA Logistics announced on Friday the recapitalization of two industrial portfolios owned by LBA valued at $1.6bn. In the deal BREIT acquired around 60% combined interest across the portfolios, and LBA’s investment fund retain the balance.
The portfolios comprise 71 assets, totalling 9.5m square feet. The properties are predominantly located in last mile locations in West Coast US markets with the vast majority in California and Seattle, which according to Blackstone are two of the best performing industrial markets in the country. Currently the assets are approximately 95% occupied.
Brian Kim, Head of Acquisitions & Capital Markets for BREIT, said, “Logistics is one of our highest conviction investment themes globally, and this acquisition illustrates BREIT’s continued momentum executing on exciting opportunities with significant growth potential. LBA Logistics is a best-in-class operator in the logistics sector, and we look forward to expanding our partnership with them.”
LBA Logistics (LBA) is a full-service real estate investment and management company with over 60 million square feet of industrial and logistics facilities across the US.
Phil Belling, LBA’s Managing Partner, added, “These assets are benefitting from the strong fundamentals in the industrial sector, which we believe will continue to be attractive over the long-term. We are excited to grow our partnership with Blackstone and look forward to continuing to create value for our investors in the logistics space.”
Upon closing this transaction, industrial will represent more than 35% of BREIT’s total portfolio, with the remaining balance mostly focused on multifamily and net leased assets. BREIT is externally managed by a subsidiary of Blackstone (NYSE: BX). Blackstone’s real estate business was founded in 1991 and has approximately $174bn in investor capital under management.