Blackstone Boosts World-wide-web Wager With Virginia Facts-Middle Deal

(Bloomberg) — Blackstone Team Inc. is investing in a group of U.S. info centers as extra customers change to the internet through the pandemic.

a sign on the side of a building: Signage outside the Blackstone Group headquarters.

© Bloomberg
Signage exterior the Blackstone Team headquarters.

A unit of the private equity giant is obtaining a around 90% curiosity in the true estate for eight one-tenant facilities in Northern Virginia, according to a assertion Monday saying a joint enterprise with Maryland-based Corporate Office environment Properties Have confidence in. The web-sites are valued at approximately $300 million and span 1.3 million sq. feet (121,000 sq. meters).

a sign on the side of a building: Signage outside the Blackstone Group headquarters.

© Bloomberg
Signage outside the house the Blackstone Team headquarters.

Info centers are gaining popularity between traders as men and women spend extra time on line. All through the pandemic, the increase in function-from-residence, e-commerce and streaming have aided gasoline the sector’s progress. Goldman Sachs Group Inc.’s infrastructure arm agreed to make investments $500 million in the sector very last month.

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“We’re attempting to feel about how the earth is modifying and getting in front of asset classes and sectors benefiting from individuals technological shifts,” Tyler Henritze, head of Americas acquisitions for Blackstone Real Estate, explained in an interview. “We see this as a proxy bet on tremendous expansion of net and data.”

A major part of international internet website traffic flows as a result of Northern Virginia’s info facilities, Henritze stated. The area also will be household to e-commerce huge Amazon.com Inc.’s next North American headquarters.

Blackstone has been stepping up its investments in internet-oriented houses at a time when a lot of other business-home kinds have taken a strike from social-distancing steps.

In August, the firm acquired a stake in three Hollywood studio a lot and nearby places of work, to get a slice of streaming riches. Final week, Blackstone stated its European device procured logistics facilities and land in the U.K. from Prologis Inc. for about $600 million.

In accordance to Monday’s statement, a deal for six of the Virginia homes is anticipated to be done before the finish of yr. The transaction for the other two has closed.

Blackstone will individual a stake in just the “shell properties” for the facts facilities, and tenants will be liable for the infrastructure, according to Henritze.

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