Blackstone to splash $1Bn on ProLogis property portfolio

Private equity firm Blackstone is close to striking a deal with industrial real estate firm ProLogis to buy 180 properties for around $1 billion, according to Reuters and the Wall Street Journal. ProLogis is selling the properties to help pay down debts it incurred during boom-time expansion. Blackstone’s real estate assets were, at the end of June, around $23.8 billion.

(Reuters) – Private equity firm Blackstone Group is near a deal to buy a portfolio of 180 properties from ProLogis (PLD.N) for about $1 billion, a source familiar with the situation said on Thursday, confirming a report in the Wall Street Journal.

The deal involves more than 20 million square feet of warehouse property across the United States, the paper said.

ProLogis has been working for years to pare a debt load taken on during an aggressive boom-time expansion, according to the report. In July, credit ratings agency Fitch Ratings stripped ProLogis of its investment-grade rating, partly because it was not clear how the company would raise money to pay down debt.

Blackstone had real estate fee-earning assets under management of $23.8 billion at the end of June. (Reporting by Soyoung Kim and Megan Davies; Editing by Robert MacMillan and Richard Chang)