Bank of Montreal is helping Blackstone refinance a 109-property industrial portfolio in the U.S., according to multiple reports.

BMO is among a group of lenders seeking to refinance the U.S.-based investment giant’s mortgage on the portfolio, which encompasses about 8.5 million square feet. The deal, worth an estimated US$1 billion is considered close to being done, according to the reports.

Citi Real Estate is leading the lending team, which includes Barclays Capital Real Estate, German American Capital and Wells Fargo. Blackstone acquired the portfolio in 2019.

The reports of the refinancing effort come as Blackstone continues to show strong appetite for industrial assets. Digital Realty has formed a joint-venture with Blackstone to build four hyperscale data centre campuses in key global areas, such as Frankfurt, Paris, and northern Virginia. The developments have an estimated cost of about US$7 billion.

Blackstone-affiliated funds specializing in infrastructure, real estate and tactical opportunities will invest US$700 million in the project for an 80% ownership stake, while Digital Realty will retain the remaining 20% interest.

— With files from Joe Palmisano