Funds managed by affiliates of Blackstone, the world’s largest alternative asset manager, with more than $1 trillion in Assets Under Management, will acquire an 80% interest in Burstone’s Pan-European Logistics (PEL) platform valued at €1,022 million (R20 billion). Burstone will retain a 20% co-investment in the PEL platform while continuing to manage the portfolio’s assets. The proposed transaction is subject to regulatory and shareholder approvals.
Amassed since 2017, the portfolio comprises 32 high quality midsize and big-box logistics properties located around key European urban centres in seven countries, with the majority in Germany, France and the Netherlands. The 1.2 million sqm 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.
Together, Burstone and Blackstone will expand the PEL portfolio by focusing on aggregating industrial and logistics properties across core European markets.
“We have indicated for a while that we have been seeking strategic partnerships in Europe and we are delighted to partner with Blackstone. This partnership deepens our already strong relationship with Blackstone’s operational and management team, who know our European team well from previous successful collaborations. Partnering with such a best-in-class international business unlocks exciting opportunities for the platform, enhancing scalability and driving the growth potential of the Group’s fund and investment management business,” said Andrew Wooler, CEO of Burstone Group.
The transaction means that Burstone Group has made significant strides in deleveraging its balance sheet and optimising capital allocation.
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.”
