Jun 3, 2019

Blackstone's $18.7 billion warehouse buy from GLP

Dan Primack, author of Pro Rata

The Blackstone Group agreed to pay $18.7 billion to buy a portfolio of U.S. industrial warehouses, totaling 179 million square feet, from Singapore's GLP, which had been prepping an IPO of the business.

Why it matters: It's the largest such purchase in history and makes Blackstone an even more dominant player in U.S. real estate. It's also the private equity industry's latest "back to the future" deal, as Blackstone previously owned around half of the properties, selling them to GLP in 2015.

  • Caveat: There have been reports this is private equity's largest real estate deal ever, not just its largest logistics property deal, although that claim depends on how you characterize Blackstone's $39 billion purchase of Equity Office in 2007.

The bottom line: "The rise of Amazon — GLP’s biggest tenant — and other e-commerce companies has spurred demand for industrial warehouses. Valuations of publicly-traded warehouse owners have surged in some cases by 30% this year. Particularly prized are properties near big cities, which help solve the 'last-mile' puzzle posed by a move toward next-day delivery," writes the Wall Street Journal.

Go deeper: The race to dominate the $1.5 trillion business of moving stuff

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Updated 27 mins ago - Politics & Policy

George Floyd protests: What you need to know

Minneapolis police block protesters at a rally on May 30 outside the state house on the fourth straight day of demonstrations against the death of George Floyd. Photo: Megan Jelinger/Anadolu Agency via Getty Images

Police fired tear gas during a fourth straight night of protests in Minneapolis, video from the scene shows, as demonstrations over the death of George Floyd and other police-related killings of black men spread across the U.S. Saturday.

The big picture: Floyd's death in Minneapolis police custody is the latest reminder of the disparities between black and white communities in the U.S. and comes as African Americans grapple with higher death rates from the coronavirus and higher unemployment from trying to stem its spread.

U.S. cities crack down on protests against police brutality

Demonstrators gather at Lafayette Park across from the White House to protest the death of George Floyd in Washington, D.C. Photo: Yasin Ozturk/Anadolu Agency via Getty Images

Major U.S. cities have implemented curfews and called on National Guard to mobilize as thousands of demonstrators gather across the nation to continue protesting the death of George Floyd.

The state of play: Hundreds have already been arrested as tensions continue to rise between protesters and local governments. Protesters are setting police cars on fire as freeways remain blocked and windows are shattered, per the Washington Post. Law enforcement officials are using tear gas and rubber bullets to try to disperse crowds and send protesters home.

Trump to invite Russia and other non-member G7 countries to summit

President Trump at Cape Canaveral, Florida, on Saturday. Photo: Saul Martinez/Getty Images

President Trump told reporters on Saturday evening he would postpone the G7 summit to September and expand the meeting to more nations that are not members of the Group of 7.

Details: Trump said he would invite Russia, South Korea, Australia and India to the summit, according to a pool report. "I don’t feel that as a G7 it properly represents what’s going on in the world. It’s a very outdated group of countries," he said.