Logistics real estate provider Prologis will buy 14 million sqft. (1.3 million sqm) of warehouses and industrial property from Blackstone Real Estate for USD3.1 billion.

The acquisition price represents an approximately 4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents.

Prologis president Dan Letter says: “These high-quality properties are complementary to our portfolio and fit perfectly into our long-term strategic plan for growth.

"The acquisition demonstrates our unique ability to add significant scale to our portfolio - expanding customer relationships and increasing opportunities for our growing Essentials platform."

San Francisco-based Prologis currently owns 1.2 billion square feet of logistics real estate in 19 countries.

The deal expands Prologis' relationship with 50 existing customers and adds 77 new customers. It also expands the company's presence in Atlanta, Baltimore/Washington DC, California, Dallas, Las Vegas, New York/New Jersey, Phoenix and South Florida.

The company plans to hold all of the properties acquired.

Nadeem Meghji, head of Blackstone Real Estate Americas, says: "Where you invest matters, and this transaction demonstrates the exceptional demand for high-quality warehouses.

“With near record low vacancy, logistics remains a high conviction theme for us; we are proud owners of USD100 billion of warehouses in North America and USD175 billion in total around the world."