Blackstone is acquiring an 80% stake in Burstone’s €1.1bn pan-European logistics (PEL) platform.
Burstone said it will hold the remaining 20% interest in the 1.2m sqft portfolio, which will be overseen by its European team under the leadership of managing director Paul Rodger.
PEL’s portfolio, which has been growing since 2017, now includes 32 mid-sized and large logistics properties in key European urban centres in seven countries, including Germany, France, and the Netherlands. The portfolio is 97% occupied by over 110 tenants.
Burstone said the transaction will enable it to expand its international fund and investment management strategy. For Blackstone, the deal complements its existing big box to last mile portfolio in Europe.
Andrew Wooler, CEO at Burstone, said: “This transaction is a continuation of our strategy of partnering with global, best-in-class asset managers who recognise the strength of our local teams and expertise, whilst also offering enhanced access to global institutional capital.
“It deepens our already strong relationship with Blackstone’s operational and management team, who know our European team well from previous successful collaborations. Furthermore, it will enable us to retain a significant investment in Europe, whilst expanding our fund and investment management model, which combines traditional real estate asset yields with additional upside potential from our comprehensive management capabilities.”
James Seppala, head of European real estate at Blackstone, said: “Logistics is one of our highest conviction investment themes globally.
“This exceptionally well-located 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.”
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