According to people familiar with the matter, Blackstone Group has agreed to sell a portfolio of warehouse and logistics properties spread across Australia’s largest cities to property investor ESR Cayman Ltd. for approximately $3 billion.
The transaction, which involves approximately 45 assets owned by Blackstone’s Milestone Logistics, could be announced as soon as Monday, according to one of the people, who requested anonymity due to the nature of the details. ESR defeated rival bidders, including other real estate investors, the individual said.
At $3 billion, a sale will be Australia’s largest real estate deal in at least five years, according to Bloomberg analysis. Additionally, it demonstrates the rise of warehousing, which has become one of the most sought-after property groups, owing in part to the pandemic’s boom in online shopping.
Blackstone amassed the logistics portfolio through hundreds of discrete transactions that started in 2016 with a deal with Australian developer Goodman Group. The portfolio is currently 98 percent occupied, with an average lease period of just over seven years for its tenants, one of the people said.
On Sunday, the Australian Financial Review reported on the transaction. Blackstone and ESR representatives declined to comment.