Blackstone buying USD18.7 BN worth of Logistics Assets from GLP in world record deal

Question

Thoughts on this deal? Is this the pinnacle of the E-Commerce hype or just the beginning? How can they deploy that much capital that late in the cycle?

bolo up · Accepted Answer

I'm not suggesting this would be the case by any means, but in theory: you have different buckets of capital that pay you differently. You could allocate the purchase price of assets in a way that works to maximize the promote to the firm as opposed to maximizing returns for all investors.

Edifice · Answer

Obviously huge, but this isn’t the largest deal. That was stated incorrectly in Bloomberg (if that’s where you saw it). The largest deal was their https://www.bloomberg.com/news/articles/2019-02-13/private-equity-likes…$39 billion purchase of the Equity Office portfolio in 2007. > The value of its property business more than doubled in 2007 with the $39 billion acquisition of Sam Zell’s Equity Office Properties. Though https://www.reuters.com/article/us-equityoffice-blackstone/blackstone-w…this Reuters link says it was $23 billion…

HopefulMogul · Answer

From their website (BREIT): "Blackstone Real Estate’s global opportunistic BREP strategy will acquire 115 million square feet for $13.4 billion and its income-oriented non-listed REIT, Blackstone Real Estate Income Trust (BREIT), will acquire 64 million square feet for $5.3 billion." Link: https://www.breit.com/updates/press-releases/blackstone-to-buy-u.s.-log…BLACKSTONE TO BUY U.S. LOGISTICS ASSETS FROM GLP FOR $18.7 BILLION Something to note - BREIT's portfolio is (was) 55% multifamily and 34% industrial.

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Blackstone buying USD18.7 BN worth of Logistics Assets from GLP in world record deal

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Blackstone buying USD18.7 BN worth of Logistics Assets from GLP in world record deal

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