Global investment giant Blackstone has acquired an 80% stake in a €1.1 bn pan-European logistics platform managed by Burstone Group.
Burstone Group will retain the remaining 20% stake, with the Burstone Europe team continuing to manage the portfolio, led by managing director Paul Rodger.
James Seppala, head of European Real Estate, 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.'
Amassed since 2017, the portfolio comprises 32 high quality midsize and big-box logistics properties located around key European urban centres in seven countries, including in Germany, France and the Netherlands.
The 1.2 million m2 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.
According to both parties, the deal marks the largest logistics transaction to be agreed in Europe in 2024.
The partnership will focus on continuing to capture the current portfolio reversion, whilst looking to benefit from what is an attractive entry point in the cycle to acquire primarily mid and big-box industrial and logistics properties, across core European markets.
Andrew Wooler, CEO, at Burstone Group, said: 'The European logistics sector, where we have a market leading team and track record of unlocking value from both income-producing assets and development opportunities, remains one of our key investment themes.
'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.'
The transaction will enable Burstone to accelerate its international fund and investment management strategy as it seeks to drive sustainable growth across its global operations.
It is one of several transactions that on completion will see Burstone’s third-party assets under management increase from €240 mln to c.€1.2 bn, with total GAV of c.€2.1 bn. Revenues from fund and asset management are projected to more than double over the next 12 to 24 months.
The transaction is subject to regulatory and shareholder approvals.
Burstone was advised by Merrill Lynch South Africa t/a BofA Securities, and by Cliffe Dekker Hofmeyr on legal matters.
Blackstone’s financial advisors were Standard Chartered Bank and Barclays PLC, while the firm was advised on legal matters by Simpson Thacher & Bartlett.
