Blackstone buys logistics portfolio from Principal for $500m

Blackstone Group has purchased a 4 million-square-foot portfolio of warehouses, distribution centers and other industrial property for $500 million, according to media outlets.

Blackstone purchased the Southern California portfolio from Principal Real Estate Investors, the real estate investment arm of Principal Financial Group, which owned the portfolio with its joint venture partner Majestic Realty Co. until it sold its stake in September for $111.5 million.

Blackstone has been investing heavily in logistics real estate, betting on the continued strength of e-commerce. Last year, Blackstone agreed to pay $1.5 billion for a logistic center portfolio from Irvine Realty, according to The Real Deal. The properties, totaling 12 million square feet, are primarily on the West Coast. And on the sell side, Blackstone recently sold its pan European logistics company, Logicor, to affiliates of China Investment Corp. for €12.25 billion ($14.29 billion).

Blackstone’s real estate assets under management grew to $111.3 billion in the second quarter, up 9 percent from $101.9 billion a year ago.