Blackstone has agreed to purchase an 80% stake in a €1,1 billion (£950 million) European warehouse portfolio from Burstone, a Johannesburg-listed company formerly known as Investec's property fund. The portfolio includes properties in Germany, France, and the Netherlands. Burstone will receive €250 million in cash from the sale, which will fund its business expansion, and retain a 20% stake while its European team continues managing the portfolio. This acquisition aligns with Blackstone's strategy of investing in the warehouse sector, highlighted by its recent recapitalisation of Mile way, a last-mile logistics firm. The warehouse sector continues to thrive amid the e-commerce boom.
Blackstone, the major private equity firm, has decided to acquire an 80% share in a European warehouse portfolio managed by Burstone, marking the latest move by the U.S. investment firm to invest in the warehouse sector, which has surged with the growth of e-commerce. The Johannesburg-listed company, previously known as Investec's property fund, has agreed to sell its controlling interest in a €1,1 billion (£950 million) portfolio, which includes properties in seven countries such as Germany, France, and the Netherlands, to Blackstone, as announced by Burstone on the stock exchange.
According to the statement, Burstone will receive €250 million in immediate cash from the sale, which will support its business expansion. Additionally, Burstone will maintain a 20% stake in the portfolio, and its European team will continue to oversee its management.
In recent years, Blackstone has invested heavily in European warehouse businesses, including through the brand Mile way, a last-mile logistics firm that Blackstone and other investors recapitalised in 2022. Logistics, particularly warehouses, have stood out as a strong sector in an uncertain commercial real estate market, driven by the increasing demand for space due to the e-commerce boom.
In summary, Blackstone's acquisition of an 80% stake in Burstone's European warehouse portfolio highlights its strategic focus on the warehouse sector, which has surged due to e-commerce growth. With a €1,1 billion portfolio spanning seven countries, Burstone will receive €250 million in cash and retain a 20% stake while its European team continues to manage the assets. This move aligns with Blackstone's broader investment strategy, including its recent recapitalisation of Mile way, and highlights the continued strength of logistics and warehousing in a challenging commercial real estate market.
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