US logistics property giant Prologis has reportedly launched a bid to buy Blackstone’s European logistics platform Mileway in what would be the largest ever private real estate deal.
According to news reports by the Financial Times and React News, Prologis has made a non-binding offer of a little over €21 bn for Mileway, which owns a portfolio of almost 2,000 European warehouses that Blackstone has been building through acquisitions over the past six years.
The company now has about six weeks to finalise a bid that satisfies a number of conditions laid down by the funds selling Mileway, the FT said.
Blackstone had indicated that it would retain its exposure to the sector last month when it announced plans to recapitalise Mileway at a €21 bn valuation.
However, the plans included a 75-day 'go-shop' period in which higher bidders could put forward an offer.
Around 20 prospective buyers were approached by Morgan Stanley, the bank managing the process, of which eight looked seriously at Mileway. However, only Prologis submitted a non-binding bid, according to the FT.
