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Blackstone Is Said to Seek Sale of Some Warehouses from GLP Deal

The private equity giant is in talks with prospective buyers, including Prologis.

(Bloomberg)—Blackstone Group LP is talking with prospective buyers for some of the warehouses it will amass as part of an $18.7 billion acquisition agreed to last month with GLP Pte Ltd., according to people with knowledge of the matter.

The investment firm has solicited interest for bespoke portfolios of properties from suitors including Prologis Inc., said some of the people, who asked not to be identified because the discussions are private. At least one portfolio is valued at $1 billion or more, one of the people said.

Representatives for Blackstone and Prologis declined to comment.

It’s not uncommon for real estate investors to divest non-core or non-strategic holdings they amass from large transactions. Blackstone sold a myriad of properties to a variety of buyers as part of its almost $40 billion purchase of Equity Office Properties Trust in 2007.

Warehouse tenants such as Inc. got a respite in the second quarter from what’s been a tight market. The available supply of U.S. industrial and logistics real estate -- the sum of vacant space as well as occupied space being marketed for new tenants -- snapped a streak of declines that lasted 34 quarters, according to a report this week from CBRE Group Inc.

Still, big landlords remain bullish there will be ongoing institutional investment in the sector. Colony Capital Inc. is exploring the sale of its warehouse business, which may fetch more than $5 billion, Bloomberg reported this week.

To contact the reporter on this story: Gillian Tan in New York at [email protected].

To contact the editors responsible for this story: Alan Goldstein at [email protected]

Steve Dickson, Daniel Taub

© 2019 Bloomberg L.P.

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