Cabot Properties has sold 124 logistics properties to two Blackstone Real Estate vehicles for a combined $2.8bn (£2.1bn).
Blackstone’s European core-plus platform has bought 22 properties in Cabot’s Value Fund V portfolio. These measure a combined 2.2m sq ft across markets including the Midlands, the North West and the South East in the UK, Amsterdam in the Netherlands and Düsseldorf in Germany.
The remaining 102 properties, located in the US, were snapped up by Blackstone Real Estate Income Trust. The US assets totalled 15.2m sq ft in areas including the Inland Empire, California; Eastern Pennsylvania; South Florida; and the New York Metropolitan Area.
Franz Colloredo-Mansfeld, chairman and chief executive of Cabot, said: “The sale of our Value Fund V portfolio completes our most ambitious logistics property investment [programme] over the past 20 years.
“This portfolio was created through 90 transactions, including 24 development projects throughout the US, the UK and Europe completed over the past five years.”
Pat Ryan, chief investment officer for Cabot’s value-add strategy, said: “We attracted strong interest from the world’s leading investors, reflecting the high quality of the portfolio and the rising demand for purpose-built industrial assets to address critical challenges facing supply chains in major markets across the world.”
David Levine, senior managing director at Blackstone Real Estate, said, “The logistics sector continues to benefit from strong tailwinds driven by e-commerce. We are excited to expand our relationship with Cabot and continue to grow our global logistics portfolio.
“These high-quality, stabilised assets are perfectly suited for our [core-plus] vehicles given their strong locations, stable cash flows and long-term growth potential.”
Value Fund V was launched in 2016 and is part of Cabot’s flagship fund series that focuses on creating diversified industrial portfolios that generate strong cash flow and result in long-term value creation.
The fund was created through single and smaller transactions, including ground-up developments, with a focus on critical last-mile locations. The portfolio’s average vintage is less than 15 years, and the properties are leased to a diverse collection of tenants, including e-commerce companies.
CBRE and Eastdil Secured advised Cabot on the deal.
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
