Blackstone shares close lower on Wednesday, company announces $1.1 billion acquisition in China, bolstering its logistics portfolio

Blackstone Group LP (BX) said earlier this week that it had acquired a majority stake in China Greater Bay Area’s largest urban logistics park from R&F Group in a deal valued $1.1 billion, while bolstering its logistics portfolio in the Asian country by almost one-third.

Blackstone Real Estate’s opportunistic funds will buy a 70% stake in the 1.2 million-square-meter logistics park in Guangzhou, China, the company said.

Blackstone shares closed lower for the third time in the past ten trading sessions in New York on Wednesday. The stock went down 3.08% ($1.76) to $55.35, after touching an intraday low at $55.17, or a price level not seen since November 4th ($52.73).

Shares of Blackstone Group LP have retreated 1.05% so far during the current year, following an 87.66% gain in 2019.

“Logistics remains among our highest conviction global investment themes and we continue to see strong momentum driven by e-commerce trends,” Justin Wai, Blackstone Real Estate Managing Director, said in a press release.

“This transaction represents a continuation of Blackstone’s strategy to acquire high quality logistics located in tier-one distribution hubs with ongoing tenant demand. The investment also complements our existing Chinese logistics portfolio geographically, which will total 53 million square feet and give us a presence in 23 cities once the acquisition is complete,” Wai said.

Having operations across the globe, Blackstone Real Estate manages nearly $174 billion in investor assets.

Analyst stock price forecast and recommendation

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding Blackstone Group LP’s stock price, have a median target of $63.00, with a high estimate of $68.00 and a low estimate of $51.00. The median estimate represents a 13.82% upside compared to the closing price of $55.35 on November 11th.

The same media also reported that at least 14 out of 18 surveyed investment analysts had rated Blackstone Group LP’s stock as “Buy”, while 4 – as “Hold”.