By Erika Morphy Globest.com
Blackstone has extended its substantial industrial holdings a bit more with its acquisition of 13 properties from Iron Mountain in a $358 million sale leaseback transaction.
The purchase was by the company’s REIT, Blackstone Real Estate Income Trust. The 2.1 million square feet portfolio is located predominantly in California, northern New Jersey and the Lehigh Valley. Iron Mountain will remain in these facilities under an initial ten-year lease term, with options to renew up to an additional 20 years.
“The industrial sector continues to benefit from strong demand driven by e-commerce tailwinds, and we believe these well-located assets are a great addition to our portfolio, which is heavily weighted toward faster-growing sectors like logistics,” David Levine, senior managing director in Blackstone Real Estate, said in prepared remarks.
This transaction is part of Iron Mountain’s ongoing capital recycling program, and Iron Mountain says it plans to use the proceeds to reinvest in higher growth areas of its business.
“This transaction frees up approximately $260 million of investable capital on a leverage-neutral basis, that we intend to redeploy into faster growing areas, including our data center business,” says Barry Hytinen, executive vice president and CFO at the REIT.
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