Blackstone has bought an 80% stake in Burstone Group’s €1.1bn (£930m) pan-European logistics platform.
Following the acquisition, Burstone has retained a 20% stake in the platform and formed a strategic partnership with funds managed by affiliates of Blackstone.
This partnership is expected to focus on capturing the current portfolio reversion and acquire primarily mid and big-box industrial and logistics properties across core European markets.
The portfolio, amassed since 2017, comprises 32 mid-size and big-box logistics facilities located around seven European countries, including in Germany, France and the Netherlands.
The 12.9m sq ft portfolio is 97% occupied by over 110 tenants, primarily in the third-party logistics sector, which benefit from the assets’ strategic micro locations with exemplary transport connectivity.
James Seppala, head of European real estate at Blackstone, said: “Logistics is one of our highest conviction investment themes globally. This portfolio of assets in core logistics markets across Europe is additive to our existing portfolio and allows us to continue to capitalise on customer demand, including as a result of growing e-commerce penetration trends across the continent.”
Andrew Wooler, chief executive at Burstone, said: “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.”
The transaction is subject to regulatory and shareholder approvals.
Merrill Lynch South Africa was Burstone’s financial advisor and transaction sponsor, while Cliffe Dekker Hofmeyr advised the firm on legal matters; Blackstone’s financial advisors were Standard Chartered and Barclays, while its legal advisor was Simpson Thacher & Bartlett.
Photo © Taidgh Barron/ZUMA Press Wire/Shutterstock
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