Private equity giant Blackstone is gearing up to float its European logistics arm, Logicor, next year, someone close to the company told PropertyEU's Sara Seddon Kilbinger on Friday.
An IPO is currently being billed as the most likely disposal option for Logicor, which has an enterprise value of €13 bn, PropertyEU has learned. Goldman Sachs and Eastdil Secured have been appointed to advise Blackstone.
Prior to an IPO, Blackstone is expected to refinance further within Logicor to reduce its costs, given that debt today is substantially cheaper than it was back in 2012, when its European logistics arm was set up.
The IPO would mark another impressive milestone for the US behemoth. Since its inception, Logicor has built up a portfolio of around 13.6 mln square metres, focusing on markets such as Germany, France, the UK and the Nordics. In March, it acquired a portfolio of 12 logistics assets in Germany, Spain and the Benelux from Goodman European Partnership, a European logistics real estate investment vehicle, for an undisclosed sum. The 496,000 square metre portfolio comprised six assets in Germany, three in Spain and three in the Benelux region.
P3 deal
Interest in the European logistics sector is at an all-time high, making it an opportune time for an IPO, or even a sale. Earlier this month, Singaporean sovereign wealth fund GIC snapped up European logistics specialist P3 Logistics Parks for €2.4 bn. Adding to Logicor’s cachet, it was named ‘Property Company of the Year’ in October at the Industrial Agents Society 2016 Awards.
Driving interest in the logistics sector is the recent explosion in e-commerce, which soared by almost 20% last year in Europe alone. In addition, GDP growth in the EU, which is expected to rise by 1.7% this year, is also fuelling demand for logistics space. Around €14.41 bn was invested in logistics in Europe last year, according to Savills.
However, Blackstone has been known to abandon an IPO in favour of a sale. In 2014, it ditched plans to float its US logistics platform, IndoCor Properties, in favour of selling it to Singapore’s GIC for €6.52 bn.
OfficeFirst acquisition
Blackstone remains one of the most active real estate investors in Europe. Earlier this month, Blackstone Real Estate Partners IV agreed to acquire all shares in OfficeFirst Immobilien, the German office platform of Bonn-based real estate company IVG Immobilien, in the biggest European property deal of the year. Blackstone's fund paid around €3.3 bn for the portfolio and its underlying platform.
To date, Blackstone has invested around €8 bn in Europe this year, including its acquisition of OfficeFirst. In June, Blackstone raised €5.5 bn in the first closing for its new fund, Blackstone Real Estate Partners Europe V (BREP V), which it plans to grow to around €7 bn, making it Blackstone’s largest dedicated real estate fund in Europe.
Blackstone had $102 bn of real estate AUM globally as of end-September 2016.
