Blackstone buys majority stake in Crow Holdings industrial assets

NEW YORK & DALLAS - Blackstone (NYSE: BX) has agreed to acquire a 95% stake in a portfolio of industrial properties from Crow Holdings, a prominent real estate investment and development firm, for $718 million. The transaction, which will see Crow Holdings and its partners retain a 5% interest, involves 25 Class A buildings totaling 6 million square feet, primarily located in the Dallas and Houston areas. Blackstone's strong financial position is evident in its impressive 64.8% revenue growth and attractive 4.2% dividend yield.

David Levine, Co-Head of Americas Acquisitions for Blackstone Real Estate, highlighted the investment as a strategic move amid market volatility, citing the enduring strength of the logistics sector. With a significant drop in new construction starts since the 2022 peak, Blackstone continues to express confidence in logistics as a core investment theme. The company boasts ownership of over $90 billion in warehouses across North America.

Michael Levy, CEO of Crow Holdings, expressed pride in the quality of the portfolio developed by Crow Holdings and enthusiasm for the partnership with Blackstone. He noted the company's deep-rooted history in the Dallas logistics market, dating back to the first warehouse built by the company's founder in 1948.

The acquisition, slated to close in the second quarter of 2025, expands Blackstone's already extensive commercial real estate portfolio, which includes logistics, data centers, residential, office, and hospitality sectors. The firm, with $315 billion of investor capital under management, is recognized as the largest commercial real estate owner globally.

This deal is based on a press release statement and reflects the ongoing interest and investment in key logistics markets by major real estate players. According to InvestingPro analysis, Blackstone currently appears undervalued, with analysts setting price targets ranging from $128 to $222 per share. For deeper insights into Blackstone's valuation and 12 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Blackstone Inc. has successfully raised €9.8 billion ($10.8 billion) for its European real estate fund, marking the largest external capital pool ever for such a fund in Europe. This development comes amid a significant correction in the property market, and Blackstone now holds $47 billion across its main opportunistic real estate fund series. Additionally, Blackstone received an upgraded rating from Citizens JMP, with analyst Devin Ryan raising the rating from Market Perform to Market Outperform, citing the firm's substantial dry powder of around $170 billion. This capital is spread across private equity, real estate, and credit and insurance sectors, positioning Blackstone for robust returns.

In other developments, Blackstone's global head of infrastructure, Sean Klimczak, highlighted significant growth opportunities in the Asia-Pacific data center market, driven by expanding digital infrastructure and AI data centers. Meanwhile, Blackstone is considering a minor investment in TikTok's U.S. operations as ByteDance nears a deadline to sell these assets to non-Chinese buyers. The potential involvement of Blackstone, alongside other investors, is part of ongoing discussions to address regulatory concerns and maintain TikTok's availability in the U.S. market. The investment landscape remains dynamic, with Blackstone actively positioning itself across various sectors.

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