Blackstone Doubles Down on Logistics With $6bn Colony Capital Acquisition


Blackstone Group has announced a US$5.9 billion deal to purchase 60 million square feet of space from Colony Industrial, in a move that further solidifies the firm’s focus on the expansive growth of e-commerce and last-mile real estate.

Blackstone Real Estate Partners IX, an affiliate of Blackstone, announced it entered into an agreement to acquire Colony Industrial, the industrial real estate assets and affiliated industrial operating platform of Colony Capital, founded by Thomas J. Barrack Jr, for $5.9 billion on Monday.

The transaction comprises a portfolio of last-mile logistics assets in the United States.

Last-mile logistics real estate continues as an increasingly critical component of the global supply chain, ensuring efficient delivery times for online consumers.

Blackstone head of real estate Nadeem Meghji said the warehouse buy up demonstrated Blackstone’s “strong conviction” in logistics and positive e-commerce trends.

“As retailers continue to shorten delivery times and expand their last mile footprints, we believe warehouses in dense population centres will continue to experience outsized demand growth.”

Related: Blackstone Closes Largest-Ever Real Estate Fund

The latest deal spans approximately 60 million square feet of infill, logistics assets across 465 light industrial buildings in 26 U.S. markets, with a concentration in Dallas, Atlanta, Florida, northern New Jersey, and California.

The net sales proceeds to Colony is expected to be in excess of $1.2 billion.

Colony Industrial, headquartered in Dallas Texas, was formed in 2014 through Colony Capital’s acquisition of Cobalt Capital Partners, founded and led by Lewis D. Friedland.

Blackstone, one of the globe’s largest property owners, founded its real estate business in 1991, and has $154 billion of investor capital under management.

Morgan Stanley and Eastdil Secured served as financial advisors, CBRE National Partners served as real estate advisor to Colony Capital while Simpson Thacher & Bartlett served as legal counsel to Blackstone on the acquisition.

Related: Futuristic Warehouses, E-Commerce Drives Industrial Market

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