(Bloomberg) -- Blackstone Inc. has agreed a deal to purchase a majority stake in a portfolio of European warehouses managed by Burstone Group Ltd.
Funds managed by the private equity firm will acquire an 80% interest in the properties in a deal that values the portfolio at just over €1 billion ($1.1 billion), according to a statement Monday.
Supply chain upheaval in the face of the pandemic and heightened geopolitical tensions have added to demand for warehouse space which was already in short supply thanks to the ongoing growth of online shopping. That’s boosting rents across Europe and helping offset the impact of higher interest rates which have hit property values.
The price reflects an 11.7% discount to Burstone’s net asset value. The company will retain a 20% stake in the portfolio, previously known as the Investec Property Fund, and continue to manage the properties.
Most of the properties, which span 1.2 million square meters (12.9 million square feet), are in Germany, France and the Netherlands. Blackstone has continued to pour cash into warehouses, which now make up 40% of its global real estate portfolio and about 60% of its European holdings.
©2024 Bloomberg L.P.
