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Private equity giant Blackstone has made the largest investment into the European logistics sector this year, buying a majority stake in a portfolio amassed by a South African investor.
Blackstone acquired an 80% stake in a 13M SF portfolio of midsized and big-box logistics properties from Burstone, which is listed on the Johannesburg Stock Exchange. The deal values the portfolio at €1.1B (£926M), putting Blackstone’s investment at £741M.
The portfolio comprises 32 properties located around city centres in seven European countries, including Germany, France and the Netherlands. Built up since 2017, the portfolio is 97% occupied by more than 110 tenants, primarily in the third-party logistics sector.
Burstone will continue to manage the portfolio, and the two companies will look to buy additional similar assets in Europe.
Blackstone has been one of the biggest investors globally in logistics real estate over the past 15 years as it continues to pile into the sector.
It built the largest owner of last-mile logistics real estate assets in Europe, Mileway, and is a major owner, manager and developer of European logistics real estate firm Logicor. This year, it launched Indurent, a new UK developer and operator of industrial and logistics space that combined assets it bought from listed companies St Modwen and Industrials REIT.
“Despite the impact of the higher rate backdrop, this is a compelling time in the cycle to be in growth mode, with favourable structural drivers — namely nearshoring trends, ongoing supply chain reconfiguration, e-commerce penetration and technological disruption — underpinning very low vacancy rates in our key markets, which is translating into an attractive rental and capital growth outlook,” Burstone CEO Andrew Wooler said in a statement.
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