Blackstone Real Estate Income Trust and LBA Logistics Announce $1.6B Industrial Recapitalization

Rhea-AI Summary

Blackstone Real Estate Income Trust (BREIT) and LBA Logistics announced the recapitalization of two industrial portfolios valued at $1.6 billion. BREIT acquired approximately 60% interest in the 71 assets, spanning 9.5 million square feet and boasting 95% occupancy. The properties, located mainly in top-performing markets like California and Seattle, align with BREIT's strategic focus on last-mile logistics. Following this transaction, over 90% of BREIT's investments will be in multifamily, industrial, and net leased assets, with industrial comprising more than 35% of its portfolio.

Positive

• Recapitalization of two industrial portfolios valued at $1.6 billion.
• BREIT acquired approximately 60% interest in high-quality assets.
• The portfolios are 95% occupied and mostly in top-performing markets.
• Over 90% of BREIT's investments will be in multifamily, industrial, and net leased assets after this transaction.

Negative

• None.

Blackstone Real Estate Income Trust, Inc. (“BREIT”) and LBA Logistics (“LBA”) today announced the recapitalization of two industrial portfolios owned by LBA comprising $1.6 billion of gross value. BREIT acquired an approximately 60% combined interest across both portfolios, and LBA’s investment fund and its investors retained the balance.

The portfolios comprise 71 high quality assets totaling 9.5 million square feet and are approximately 95% occupied. The assets are located predominantly in last mile locations in West Coast markets with the vast majority in California and Seattle, which are two of the best performing industrial markets in the country.

Brian Kim, Head of Acquisitions & Capital Markets for BREIT, said, “This transaction represents a compelling opportunity to acquire high-quality last mile industrial assets on behalf of our BREIT investors. Logistics is one of our highest conviction investment themes globally, and this acquisition illustrates BREIT’s continued momentum executing on exciting opportunities with significant growth potential. LBA Logistics is a best-in-class operator in the logistics sector, and we look forward to expanding our partnership with them.”

Phil Belling, LBA’s Managing Partner, added, “These assets are benefitting from the strong fundamentals in the industrial sector, which we believe will continue to be attractive over the long-term. We are excited to grow our partnership with Blackstone and look forward to continuing to create value for our investors in the logistics space.”

Upon closing this transaction, more than 90% of BREIT’s real estate investments will be in multifamily, industrial, and net leased assets, with industrial representing more than 35% of BREIT’s portfolio.

Eastdil Secured served as an advisor to LBA Logistics.

Blackstone Real Estate Income Trust

Blackstone Real Estate Income Trust, Inc. (BREIT) is a perpetual-life, institutional quality real estate investment platform that brings private real estate to income focused investors. BREIT invests in stabilized, income-generating U.S. commercial real estate across key property types and to a lesser extent in real estate debt investments. BREIT is externally managed by a subsidiary of Blackstone (NYSE: BX), a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $174 billion in investor capital under management. Further information is available at www.breit.com.

About LBA Logistics

LBA Logistics (LBA) is a full-service real estate investment and management company with a diverse portfolio of industrial properties in major markets throughout the United States. LBA Logistics’ portfolio currently totals over 60 million square feet and consists of state-of-the-art, high-bay distribution space, light manufacturing and multi-tenant business parks. LBA owns assets in major port and airport adjacent locations including South and Northern California, Seattle, Dallas, Chicago, Atlanta, New York/New Jersey, and Florida as well as regional inland hubs and infill last-mile delivery locations. In addition, LBA Realty owns and operates a portfolio of office and mixed-use properties throughout the Western United States. www.LBALogistics.com.

Forward-Looking Statements

Certain information contained in this communication constitutes “forward-looking statements” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction,” “identified” or the negative versions of these words or other comparable words thereof. These may include financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements regarding future performance and statements regarding identified but not yet closed acquisitions. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. BREIT believes these factors also include but are not limited to those described under the section entitled “Risk Factors” in its prospectus, and any such updated factors included in its periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or BREIT’s prospectus and other filings). Except as otherwise required by federal securities laws, BREIT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

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FAQ

What is the value of the industrial portfolios recapitalized by BREIT and LBA?

The industrial portfolios recapitalized by BREIT and LBA are valued at $1.6 billion.

What percentage of the industrial portfolios did BREIT acquire?

BREIT acquired approximately 60% interest in the two industrial portfolios.

What is the occupancy rate of the assets acquired by BREIT?

The acquired assets have an occupancy rate of approximately 95%.

Where are the industrial assets located?

The industrial assets are primarily located in California and Seattle.

What proportion of BREIT's portfolio will be industrial assets after this transaction?

Industrial assets will represent more than 35% of BREIT’s portfolio after this transaction.