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Blackstone Acquires Major Stake in European Warehouse Portfolio

By  |  September 2, 2024

Blackstone, the prominent private equity firm, has reached an agreement to acquire an 80% interest in a major European warehouse portfolio from Burstone, according to a Reuters report. This transaction represents a strategic expansion for Blackstone into the warehouse sector, which has experienced substantial growth in response to the surge in eCommerce.

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    The portfolio, valued at approximately 1.1 billion euros (about $1.2 billion), encompasses properties across seven countries, including key markets such as Germany, France and the Netherlands. Burstone, which is listed on the Johannesburg Stock Exchange and was formerly known as Investec’s property fund, has disclosed that it will receive 250 million euros in immediate cash from the sale. This influx of funds is expected to support Burstone’s future expansion plans. As part of the agreement, Burstone will maintain a 20% stake in the portfolio, and its European management team will continue to oversee the assets.

    According to a Reuters report, Blackstone’s investment aligns with its broader strategy to deepen its footprint in the European warehouse market. The firm has previously invested in warehouse businesses in Europe, notably through Mileway, a last-mile logistics company that Blackstone and other investors recapitalized in 2022. As the commercial real estate market faces challenges, warehouses have emerged as a strong sector due to the growing demand driven by eCommerce trends.

    Source: Reuters