Blackstone Expands Global Logistics Footprint with $2.8 Billion Cabot Properties Acquisition

The transaction marks one of the largest institutional-quality industrial real estate deals of the year, with Blackstone acquiring a strategically diversified portfolio spanning both North American and European markets.

Strategic Portfolio Composition Across Two Continents

Blackstone Real Estate’s latest expansion reflects a significant push into core logistics assets, with the transaction split into two distinct regional strategies. The U.S. component, handled through Blackstone Real Estate Income Trust, Inc. (BREIT), encompasses 102 properties representing 15.2 million square feet of operational logistics space. These facilities are concentrated in America’s most robust industrial corridors—including the Inland Empire in California, Eastern Pennsylvania’s distribution hubs, South Florida’s rapidly growing e-commerce infrastructure, and the densely populated New York Metropolitan Area.

Concurrently, Blackstone’s European Core+ operations secured ownership of 22 premium industrial properties totaling 2.2 million square feet across strategically positioned European markets. The European portfolio concentrates on established logistics hubs including the U.K.'s Midlands, North West, and South East regions, along with critical Continental nodes in Amsterdam, Netherlands, and Düsseldorf, Germany.

Five Years of Disciplined Capital Deployment

Cabot Properties, the seller, constructed this portfolio through an intensive 90-transaction development cycle completed over the past five years. The Value Fund V initiative, which formed the basis of this sale, incorporated 24 ground-up development projects alongside strategic acquisitions of existing assets. Franz Colloredo-Mansfeld, Chairman and Chief Executive Officer of Cabot Properties, highlighted the significance: “The sale of our Value Fund V portfolio completes our most ambitious logistics property investment program over the past 20 years.” The transaction extends Cabot Properties’ relationship with Blackstone, bringing their combined deal volume to approximately $5 billion across three major transactions within a four-year window.

Modern Industrial Assets Built for Supply Chain Resilience

The Value Fund V collection was specifically engineered to address contemporary logistics challenges, featuring properties with an average vintage below 15 years. The portfolio emphasizes critical last-mile delivery locations essential for e-commerce fulfillment, with tenants including leading digital commerce operators. Pat Ryan, Chief Investment Officer for Cabot Properties’ Value-Add strategy, noted that the portfolio attracted interest from multiple tier-one institutional investors, underscoring “the high quality of the portfolio and the rising demand for purpose-built industrial assets to address critical challenges facing supply chains in major markets across the world.”

Market Momentum Driving Logistics Investment

David Levine, Senior Managing Director at Blackstone Real Estate, positioned the acquisition within broader market trends: “The logistics sector continues to benefit from strong tailwinds driven by e-commerce. We are excited to expand our relationship with Cabot Properties and continue to grow our global logistics portfolio. These high-quality, stabilized assets are perfectly suited for our Core+ vehicles given their strong locations, stable cash flows and long-term growth potential.”

The transaction was facilitated by BofA Securities, CBRE, and Eastdil Secured serving as exclusive advisors to Cabot Properties, with Goodwin Procter providing legal counsel. Simpson Thacher & Bartlett LLP represented Blackstone’s legal interests.

About the Market Players

Cabot Properties operates as an international private equity real estate specialist with deep logistics sector expertise since its 1986 founding. The firm has historically invested over $13 billion in logistics real estate, managed operations across 1,500+ buildings spanning more than 200 million square feet, and served more than 4,000 tenant clients. The company maintains operational headquarters in Boston with regional offices across Chicago, Dallas, Los Angeles, London, Amsterdam, and Sydney.

Blackstone’s real estate platform, established in 1991, currently manages $230 billion in investor capital and operates as the world’s largest commercial real estate owner by asset scale. The firm’s portfolio spans every major geography and sector, including logistics, multifamily residential, single-family housing, office, hospitality, and retail operations. Beyond direct property ownership, Blackstone manages a substantial global real estate debt business alongside its Mortgage Trust operations (NYSE: BXMT).