Blackstone Group LP acquired a group of Southern California warehouses and related properties from Principal Real Estate Investors, expanding its bet on growing web commerce and global trade.
The New York-based private equity firm paid $500 million for the buildings, according to a person with knowledge of the transaction, who asked not to be named because the details are private. The properties total about 4 million square feet (371,600 square meters).
Principal Real Estate Investors, a unit of Des Moines, Iowa-based Principal Financial Group Inc., had owned the properties as part of a joint venture with Majestic Realty Co. The insurer said Oct. 27 that it realized a $411 million after-tax gain from a transaction tied to the venture. Jane Slusark, a Principal spokeswoman, confirmed that Blackstone purchased some of the assets.