Blackstone Real Estate Debt Strategies (BREDS) has provided a $244m (€197m) loan to finance a US portfolio of 37 industrial outdoor storage (IOS) logistics assets owned Alterra IOS.
Alterra said the initial funding is backed by the portfolio spanning 27 distinct markets, totalling 165 usable acres of IOS real estate and 806,000sqft of warehousing, adding that the facility includes provision for future capital draws to back upcoming acquisitions.
The deal marks BREDS’ sixth financing arrangement in the sector, bringing its total exposure to the asset class to more than $1.1bn.
Scott Whittle, CFO at Alterra IOS, said: “This transaction represents a meaningful evolution in the financing of institutionally owned IOS assets on a non-recourse basis. Rather than relying on a traditional mortgage structure, we implemented an innovative equity pledge framework that delivers the same core protections and economics for both lender and borrower in a more efficient and scalable manner.
“We appreciate Blackstone’s creativity and collaboration in helping us achieve a solution aligned with our long-term capital strategy as demand for high-quality IOS assets continues to grow.”
Kate Mooney, Alterra senior associate, capital markets, said: “We approached this transaction with a focus on aligning financing strategy with the realities of a large, geographically diverse IOS portfolio.
“By working closely with lenders to navigate the nuances of the sector, we’re able to unlock capital solutions that support both near-term acquisitions and long-term platform growth across a highly fragmented market.”
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