Rexford Industrial Acquires Blackstone Industrial Assets In Combined $1B Investment
Portfolio Pulse from Benzinga Newsdesk
Rexford Industrial Realty, Inc. (REXR) has acquired approximately 3 million square feet of industrial properties from Blackstone (BX) for $1.0 billion. The portfolio includes 48 properties, mostly located in Los Angeles and Orange counties, and is 98% leased. The acquisition was funded through Rexford's recent exchangeable senior note offerings and cash on hand. This strategic investment is expected to generate a weighted average initial unlevered cash yield of 4.7% and a stabilized yield of 5.6%. Rexford's total investment pipeline now stands at $1.4 billion, with anticipated yields of 5.0% and 5.7%, respectively.
March 28, 2024 | 8:36 pm
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POSITIVE IMPACT
Rexford Industrial Realty, Inc. acquires $1.0 billion worth of industrial properties from Blackstone, aiming to enhance cash flow growth and value creation in Southern California's industrial market.
The acquisition significantly expands Rexford's footprint in a high-demand market, likely leading to increased investor confidence and potential stock price appreciation due to the strategic nature of the investment and expected yield improvements.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Blackstone sells approximately 3 million square feet of industrial properties to Rexford Industrial for $1.0 billion, highlighting the strong demand for high-quality assets in Southern California.
While the sale represents a significant transaction for Blackstone, the impact on its stock price may be neutral in the short term due to the size and diversification of Blackstone's global portfolio. However, the successful sale reinforces Blackstone's strategic asset management and investment prowess.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80