Blackstone Buys Colony
Blackstone buys Colony.
Blackstone buys Colony Industrial from Colony Capital for $5.9 billion.
The deal is for 60 million square feet of warehouse assets across 465 light industrial buildings in 26 US markets, concentrated in Dallas, Atlanta, Florida, New Jersey, and California. It also includes a 51 percent ownership interest in a 4 million square foot portfolio of bulk distribution assets and the associated operating platform which manages both portfolios.
Colony Capital is pivoting away from traditional real estate holdings toward digital infrastructure and real estate like cell phone towers and data centers.
Nadeem Meghji of Blackstone said: ‘We are seeing accelerating demand for warehouse space in dense population centers, as goods move online, and retailers and consumers alike seek faster delivery times. This acquisition of high-quality warehouses demonstrates our continued 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 centers will continue to experience outsized demand growth.’
Lewis Friedland of Colony Industrial said: ‘Last-mile logistics real estate continues to become an increasingly critical part of the global supply chain. We are pleased to have generated strong returns for our investors implementing this strategy and the portfolio and platform are well-positioned for the positive market environment and continued growing demand for last-mile logistics space.’
Darren Tangen of Colony Capital said: ‘We appreciate Blackstone has recognized the value that we’ve created at Colony Industrial, and they are the ideal steward to lead this business during the next phase of its growth. Lew Friedland and the Colony Industrial team have executed flawlessly, achieving and even surpassing the goals of our original investment thesis five years ago. This sale allows Colony to both achieve compelling returns for our investors and generate significant liquidity, which among other uses, will help speed up our ongoing transition into digital real estate and infrastructure.’
Morgan Stanley and Eastdil Secured served as financial advisers to Colony Capital. Willkie Farr & Gallagher served as legal adviser. CBRE National Partners served as real estate adviser.
Simpson Thacher & Bartlett served as legal adviser to Blackstone.
Blackstone buys Colony Industrial from Colony Capital for $5.9 billion.
The deal is for 60 million square feet of warehouse assets across 465 light industrial buildings in 26 US markets, concentrated in Dallas, Atlanta, Florida, New Jersey, and California. It also includes a 51 percent ownership interest in a 4 million square foot portfolio of bulk distribution assets and the associated operating platform which manages both portfolios.
Colony Capital is pivoting away from traditional real estate holdings toward digital infrastructure and real estate like cell phone towers and data centers.
Nadeem Meghji of Blackstone said: ‘We are seeing accelerating demand for warehouse space in dense population centers, as goods move online, and retailers and consumers alike seek faster delivery times. This acquisition of high-quality warehouses demonstrates our continued 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 centers will continue to experience outsized demand growth.’
Lewis Friedland of Colony Industrial said: ‘Last-mile logistics real estate continues to become an increasingly critical part of the global supply chain. We are pleased to have generated strong returns for our investors implementing this strategy and the portfolio and platform are well-positioned for the positive market environment and continued growing demand for last-mile logistics space.’
Darren Tangen of Colony Capital said: ‘We appreciate Blackstone has recognized the value that we’ve created at Colony Industrial, and they are the ideal steward to lead this business during the next phase of its growth. Lew Friedland and the Colony Industrial team have executed flawlessly, achieving and even surpassing the goals of our original investment thesis five years ago. This sale allows Colony to both achieve compelling returns for our investors and generate significant liquidity, which among other uses, will help speed up our ongoing transition into digital real estate and infrastructure.’
Morgan Stanley and Eastdil Secured served as financial advisers to Colony Capital. Willkie Farr & Gallagher served as legal adviser. CBRE National Partners served as real estate adviser.
Simpson Thacher & Bartlett served as legal adviser to Blackstone.
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