Zinger Key Points
- Blackstone affiliates acquire 80% of Pan-European Logistics platform; Burstone retains a 20% stake.
- Blackstone plans to expand the PEL portfolio by targeting key European markets for industrial and logistics properties.
Blackstone Inc. BX shares are trading slightly lower premarket Tuesday. On Monday, Blackstone affiliates reached a deal to acquire an 80% stake in the Burstone Group’s Pan-European Logistics (PEL) platform, valued at €1.022 billion (R20 billion).
As per the deal, Burstone will retain a 20% co-investment in the PEL platform and will continue to manage the portfolio’s assets.
The portfolio includes 32 mid-sized and large logistics properties situated in key European urban centers across seven countries, predominantly in Germany, France, and the Netherlands.
The portfolio, spanning 1.2 million sqm, is 97% leased to over 110 tenants, mainly in third-party logistics, who benefit from the properties’ strategic locations and excellent transport connectivity.
Burstone and Blackstone will collaborate to expand the PEL portfolio by targeting the acquisition of industrial and logistics properties in key European markets.
The transaction is subject to regulatory and shareholder approvals. Burstone is projected to receive immediate cash proceeds of €250 million from the sale.
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.”
Apart from this, Blackstone, together with the Canada Pension Plan Investment Board, is reportedly close to acquiring Sydney-based data center company AirTrunk from Macquarie's asset management arm for A$20 billion ($13.5 billion), betting on the growth of cloud computing and AI.
If completed, the deal would be the largest transaction in Australia this year. Blackstone was competing with a rival consortium of private equity firm Silver Lake and asset manager DigitalBridge for AirTrunk, reported Financial Times.
Investors can gain exposure to the BX stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO and Invesco Global Listed Private Equity ETF PSP.
Price Action: BX shares are down 0.60% at $141.50 premarket at the last check Tuesday.
Image via Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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