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Blackstone Makes Second Big Industrial Play

The $3-billion deal for Pure Industrial Real Estate Trust will give Blackstone another 22 million-plus square feet of logistics space in both Canada and the US.

By Paul Bubny | Updated on January 10, 2018

Exterior of warehouse 200 Old Ranch Rd. in City of Industry, CA, one of nearly two dozen US properties in the PIRET portfolio.

VANCOUVER, B.C.—Less than a month after forging one 10-figure deal for industrial properties, the Blackstone Group has signed up for a second one. Blackstone Property Partners has agreed to acquire Pure Industrial Real Estate Trust (PIRET) in an all-cash transaction valued at approximately US$3 billion including the assumption of debt. Nearly one-third of the Canadian REIT’s 22.7-million-square-foot portfolio is spread across key US logistics markets.

The agreement calls for Blackstone to acquire all of the outstanding trust units of PIRET for approximately US$6.50 per unit. It represents a 21% premium to the closing price of PIRET units on the Toronto Stock Exchange on Monday, the last trading day prior to the announcement of the deal; and a 22% premium to PIRET’s volume-weighted average unit price on the TSX for the 30-day period ending Monday.

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