August 7, 2013

Lehman Brothers Holdings Inc. and ProLogis sell a portion of their 17.7 million sq. ft. joint-venture portfolio of industrial property to The Blackstone Group, while Lehman transfers its stake in the remaining portion of the portfolio to ProLogis.

On August 6, Lehman Brothers Holdings Inc. completed the sale of its North American Industrial Fund III portfolio to The Blackstone Group and ProLogis. Lehman had owned 80% of the portfolio, while San Francisco-based ProLogis owned the remaining 20%.

The deal was structured as two separate transactions. First, the joint-venture sold the portion of the portfolio located in Reno, Nevada and California to New York-based Blackstone for $427 million. The balance of the portfolio, mostly made up of warehouse and other industrial properties located in greater Philadelphia and Las Vegas, was sold at the partnership level by Lehman to ProLogis based on a gross asset valuation of $529 million.

The assets involved in the deal comprised 82 properties, totaling 17.7 million square feet. Willkie represented Lehman and ProLogis in the asset transfer to Blackstone and advised Lehman in its equity transfer to ProLogis. The deal was handled by partners Steven Klein and David Drewes and associates Justin Elliott and Edward Dix.

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