Private equity giant Blackstone has announced the largest private real estate deal ever completed, with the €21 bn recapitalisation of Mileway, its 14.7 million m2 pan-European last mile logistics company.
Existing investors in the firm have agreed to recapitalise the company for €21 bn alongside Blackstone’s Core+ strategy, and to hold the business for the long term. The recapitalisation remains subject to a go-shop process which will commence immediately.
Over the past six years, Blackstone and Mileway’s management team have grown the company into the largest last mile logistics portfolio in Europe. Today it comprises over 1,700 last mile logistics assets, amounting to 14.7 million m2 across 10 countries.
Mileway’s largest markets include the UK, Germany, the Netherlands, Sweden and France, and it has a significant presence in Denmark, Italy, Spain, Finland and Ireland. The firm employs over 350 people across 26 offices.
In connection with the recapitalisation, existing Mileway investors have been offered the opportunity to retain or increase their shareholding, or exit for cash. The large majority of capital for the recapitalisation is coming from existing investors, demonstrating their strong conviction in Mileway and the sector.
James Seppala, head of real estate Europe, Blackstone, said: 'Together with the Mileway management team, we are proud to have built a premier portfolio of European, last mile logistics properties in the most sought-after locations.
'Logistics is one of our highest conviction themes globally and the sector continues to prove its resiliency and strong growth potential. We have delivered a tremendous result for our Blackstone real estate investors and look forward to continuing to create value for investors seeking Core+ returns over the long term.'
Emmanuel Van der Stichele, CEO, Mileway, said: 'We have worked closely with Blackstone to create a coveted last mile logistics portfolio that better connects our customers to the businesses and communities they serve.
'Blackstone’s ongoing support will enable us to continue executing on our shared vision for Mileway, Europe’s premier last mile logistics company, as we implement our value enhancing initiatives and development plans in key urban locations across the UK and Europe.'
Both Morgan Stanley and Eastdil Secured provided a fairness opinion with respect to the consideration to be received and the estimated real estate value respectively.
To further confirm this transaction represents the best available outcome for the existing investors, Blackstone is commencing a go-shop process on behalf of Mileway’s current investors, which will be led by Morgan Stanley & Co. International plc and run up to 75 days.
BofA Securities, Eastdil Secured, Goldman Sachs International, Jones Lang LaSalle, JP Morgan Securities, Morgan Stanley and Rothschild are serving as financial advisors to the existing investors.
Simpson Thatcher & Bartlett is serving as legal advisor to Blackstone.
