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Prologis eyes Blackstone’s $23 billion last-mile portfolio

Logistics real estate giant only firm to make bid on the 1,700 European warehouses so far

Prologis reported to make offer on Europe's largest final-mile portfolio (Photo: Jim Allen/FreightWaves)

Logistics real estate giant Prologis has reportedly issued a nonbinding offer to acquire a portfolio of more than 1,700 warehouses held by Blackstone’s Mileway segment. The offer of 21 billion euros ($23.1 billion) would mark the largest private real estate deal ever inked, according to multiple news outlets.

Blackstone (NYSE: BX) announced in February plans to recapitalize Mileway, a last-mile logistics real estate portfolio located throughout 10 European countries. The unit operates more than 14.7 million square meters of space, which Blackstone has acquired over the last six years.

Logistics properties remain in short supply across the globe. Growing e-commerce platforms and a need to hold incremental inventory to meet delivery times have pushed rents to historic levels.

Blackstone commenced a 75-day go-shop period, allowing bidders to put forward offers, in conjunction with the recapitalization announcement. The Financial Times is reporting that “20 or so prospective buyers” have approached Morgan Stanley (NYSE: MS), the bank running the process. Eight have “looked seriously at Mileway” but Prologis was the only one to make a nonbinding offer.

Prologis (NYSE: PLD) has worked with and competed against Blackstone in the past.

In 2020, Prologis sold the largest-ever U.K. portfolio of logistics properties to Blackstone. In 2019, the two were both vying for Singapore-based GLP’s assets, with Blackstone walking with the properties in a $18.7 billion transaction.

A spokesperson with Prologis said the company does not comment on market rumors.

Prologis owns and operates 1 billion square feet of space in nearly 5,000 facilities throughout the world.

Prologis Ventures is an investor in FreightWaves.

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.