Blackstone Reit triples industrial space with US$1.8b deal

[SEATTLE] Blackstone Real Estate Income Trust Inc.just tripled its holdings of industrial properties, picking up 22 million square feet of buildings for about US$1.8 billion.

The Canyon Industrial Portfolio includes 146 warehouses and distribution centers concentrated in and around Chicago, Dallas, Baltimore, Washington, DC, Los Angeles and South and Central Florida, according to a statement from Blackstone on Monday. Tenants include Amazon.com, FedEx and Coca-Cola.

With the rise of online shopping, companies are scrambling for real estate in or near major urban areas to store products close to where their customers live and work. These buildings help create a network of facilities to complete what's called the "last mile" of delivery.

The deal expands Blackstone Reit's portfolio to US$7 billion in gross assets, including 33 million sq ft of industrial space and 17,200 multifamily apartments. The company, which is managed by a subsidiary of Blackstone Group LP, also has some hotels and shopping centers with grocery stores.

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