Blackstone and Prologis to pay $960 mln for warehouses -sources

NEW YORK Wed May 22, 2013 5:00pm EDT

NEW YORK May 22 (Reuters) - Blackstone Group LP and Prologis Inc have agreed to buy a portfolio of 17 million square feet of warehouse and distribution centers whose majority owner is Lehman Brothers for about $960 million, two sources familiar with the deal said on Wednesday.

Under the deal, Blackstone's IndCor Properties will operate about 9.5 million square feet of properties in Reno, Nevada. Prologis will buy the remaining properties which are chiefly in Pennsylvania and some in Las Vegas, the sources said.

The sources did not want to be named because they were not authorized to speak on the record about the pending deal.

Lehman currently owns 80 percent of the portfolio, and Prologis owns 20 percent.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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