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Blackstone has acquired one other giant warehouse portfolio, in a €1bn transaction, including to the US funding group’s wager on the logistics sector with one in every of Europe’s largest property offers this yr.
Johannesburg-listed landlord Burstone — previously referred to as Investec Property Fund — introduced on Monday it had agreed to promote an 80 per cent stake in its roughly €1bn European logistics portfolio, spanning properties in Germany, France and the Netherlands.
Blackstone has been investing in warehousing area lately on the again of a increase in ecommerce, constructing an enormous portfolio of UK and European logistics property by means of a gradual stream of smaller purchases and quite a lot of main offers.
“Logistics is one in every of our highest conviction funding themes globally,” stated James Seppala, head of European actual property at Blackstone. He stated the Burstone portfolio was “exceptionally well-located”, including that the sector was benefiting from “rising ecommerce penetration tendencies throughout the continent”.
The transaction is one other signal that dealmaking is beginning to return to the industrial property sector after a brutal two-year downturn attributable to excessive borrowing prices. It comes after Segro, the UK’s largest listed logistics landlord, raised around £900mn of recent fairness in February to put money into extra warehouse area and make acquisitions because the market recovers.
European logistics properties have suffered smaller value declines than different industrial actual property sectors throughout the downturn, and have began to get well sooner.
Asset values within the industrial sector, which incorporates logistics, have misplaced 22 per cent for the reason that peak of the market in 2022, based on a Inexperienced Avenue index, however gained virtually 1 per cent within the yr to June — a greater restoration than different property varieties.
Final yr, Blackstone acquired UK landlord Industrials REIT for £700mn, a specialist in so-called “final mile” properties near metropolis centres. In 2021, it took non-public St Modwen’s for £1.3bn.
The US non-public capital group has since introduced plans to mix the Industrials REIT and St Modwen’s logistics portfolios into a brand new firm referred to as Indurent. The combination of the 2 companies means an eventual sale of that portfolio is probably going a minimum of 12-18 months away.
Blackstone has additionally since 2019 amassed an enormous “final mile” logistic portfolio below the model Mileway, targeted on the final step of the supply course of.
Burstone will stay the supervisor of the portfolio as a part of Monday’s transaction, proudly owning a 20 per cent stake. Their 1.2mn sq m portfolio, which incorporates giant out-of-town sheds often called “massive packing containers” and smaller city websites, is 97 per cent occupied, the corporate stated. Blackstone will purchase the portfolio at a slight low cost to the properties’ valuation.
Andrew Wooler, Burstone chief government, stated the deal “deepens our already robust relationship with Blackstone’s operational and administration group, who know our European group nicely from earlier profitable collaborations”.
