Key Takeaways
- • ProLogis closed the sale of a North American industrial portfolio and minority hotel interest to Blackstone Real Estate Advisors and Hilton Worldwide for approximately $1.01 billion in gross consideration.
- • The transaction generated $804 million in net cash proceeds for ProLogis after expenses and a $190 million preferred equity investment in the Blackstone acquiring entity.
- • The industrial portfolio comprises approximately 180 North American properties, representing a significant portfolio rationalization for ProLogis.
- • ProLogis expects to close an additional sale of interests in three North American property funds to Blackstone in December 2010, contingent on administrative conditions.
- • The deal strengthens Blackstone's position in industrial real estate while allowing ProLogis to monetize assets and redeploy capital during the post-financial crisis recovery period.
Summary
ProLogis announced the closing of a major portfolio disposition on November 22, 2010, selling a North American industrial property portfolio and a minority stake in a hotel property to affiliates of Blackstone Real Estate Advisors and Hilton Worldwide, respectively. The transaction valued at approximately $1.01 billion in gross consideration represents a significant capital event for the leading global distribution facilities provider.
The deal structure generated $804 million in net cash proceeds for ProLogis after accounting for transaction expenses and a $190 million preferred equity interest funding in the Blackstone entity acquiring the industrial properties. The divested industrial portfolio consisted of approximately 180 North American properties, marking a substantial reduction in ProLogis' real estate holdings. Additionally, ProLogis anticipated closing on the sale of its interests in three North American property funds to Blackstone in December 2010, subject to completion of administrative conditions.
At the time of the transaction, ProLogis operated the world's largest portfolio of distribution facilities, managing more than 475 million square feet of industrial space across North America, Europe, and Asia, serving over 4,400 customers including manufacturers, retailers, transportation companies, and third-party logistics providers. The sale to Blackstone, a leading global alternative asset manager with substantial real estate investment capabilities, reflected strategic portfolio optimization during the economic recovery phase following the 2008-2009 financial crisis. The transaction allowed ProLogis to reduce leverage and generate liquidity while maintaining its position as the dominant provider of industrial logistics real estate globally.
The deal structure generated $804 million in net cash proceeds for ProLogis after accounting for transaction expenses and a $190 million preferred equity interest funding in the Blackstone entity acquiring the industrial properties. The divested industrial portfolio consisted of approximately 180 North American properties, marking a substantial reduction in ProLogis' real estate holdings. Additionally, ProLogis anticipated closing on the sale of its interests in three North American property funds to Blackstone in December 2010, subject to completion of administrative conditions.
At the time of the transaction, ProLogis operated the world's largest portfolio of distribution facilities, managing more than 475 million square feet of industrial space across North America, Europe, and Asia, serving over 4,400 customers including manufacturers, retailers, transportation companies, and third-party logistics providers. The sale to Blackstone, a leading global alternative asset manager with substantial real estate investment capabilities, reflected strategic portfolio optimization during the economic recovery phase following the 2008-2009 financial crisis. The transaction allowed ProLogis to reduce leverage and generate liquidity while maintaining its position as the dominant provider of industrial logistics real estate globally.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.