Blackstone Real Estate Partners has agreed to pay $1.5bn (€1.3bn) for a US logistics portfolio, according to sources.
LBA Realty is selling the 12m sq ft portfolio, while Blackstone is buying the core-plus fund that the company manages.
The deal would represent a major new investment for Blackstone in the distribution industrial space, having exited the sector last year when it sold IndCor Properties for $8.1bn.
For the last few years, the real estate manager has been managing the Blackstone Property Partners as its open-ended core-plus vehicle.
Most of the assets are in California, including in the San Francisco Bay Area and Los Angeles.
By the end of last year, Blackstone committed $10.3bn to Blackstone Property Partners in total.
It has attracted commitments from several US public pension funds, including $500m from the California State Teachers’ Retirement System, $50m from the New Jersey Division of Investment and $300m from the South Carolina Retirement System.
LBA Realty will remain involved in the portfolio, as it will continue to have an investment stake and operating role.
The portfolio represents a significant portion of LBA Realty’s industrial portfolio.
According to its website, the company owns and operates an industrial portfolio totalling 20m sq ft.
Its main markets are Los Angeles, Oakland, San Francisco, San Diego and Seattle.
It also has assets in Dallas, Denver, Phoenix and Las Vegas.
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