(Reuters) - Prologis Inc said on Monday it has agreed to buy 14 million square feet of industrial properties from real estate funds affiliated with Blackstone for $3.1 billion in an all-cash deal.
The acquisition price represents about "4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents", the warehouse-focused real estate investment trust said in a statement.
This deal expands Prologis' presence to Atlanta, Washington DC, California, Dallas, Las Vegas, New York regions, Phoenix and South Florida. The company currently owns 1.2 billion square feet of logistics real estate in 19 countries.
"This transaction demonstrates the exceptional demand for high-quality warehouses. With near record low vacancy, logistics remains a high conviction theme for us," Nadeem Meghji, head of Blackstone Real Estate Americas, said.
The deal is expected to close by the end of the second quarter.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shilpi Majumdar)
