Alternative investment firm Blackstone is adding to its already sizeable warehouse portfolio in Europe. The company recently acquired an 80% stake in a European logistics portfolio owned by the real estate business Burstone.
According to reports, the total value of the portfolio is $1.2 billion and includes properties in seven European countries, including France, Germany, and the Netherlands, with a total size of more than 1 million square feet. Burstone, which is set to receive an immediate payment of $250 million as part of the deal, will keep the ownership of the remaining 20%.
Blackstone has been aggressive in expanding its logistic investments in recent years, making multiple purchases in the United Kingdom and across Europe. The alternative investor is looking to bank in on the part of the commercial real estate business that hasn’t been struggling lately.
With the growth in e-commerce business across the world, warehouses are in high demand and are expected to remain so for the foreseeable future.
“Logistics is one of our highest conviction investment themes globally,“ James Seppala, Head of Real Estate Europe at Blackstone, said in a statement. “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 capitalize on customer demand, including as a result of growing e-commerce penetration trends across the continent.”