Blackstone Acquires 80% Stake in European Warehouse Portfolio

LONDON (Reuters) – Private equity giant Blackstone (NYSE:BX) has agreed to buy an 80% stake in a European warehouse portfolio run by landlord Burstone, marking its latest effort to invest in warehouses that have surged due to the growth of e-commerce.

The Johannesburg-listed company, previously known as Investec’s property fund, will sell the controlling stake in the 1.1 billion euros ($1.2 billion) portfolio, which includes properties in seven countries such as Germany, France, and the Netherlands, to Blackstone, as announced by Burstone in a stock exchange statement.

Burstone is set to receive immediate cash proceeds of 250 million euros from the transaction. The deal is expected to aid Burstone in funding its business expansion. Additionally, Burstone will retain a 20% interest in the portfolio, with its European team continuing to manage it.

In recent years, Blackstone has invested in various European warehouse businesses, notably under the brand Mileway, a last-mile logistics company that was recapitalized by Blackstone and existing investors in 2022.

With the e-commerce boom driving demand for storage, logistics and warehouses remain a bright spot in a struggling commercial real estate market.

($1 = 0.9035 euros)