Blackstone bets big on European logistics firm with €21bn reinvestment
Blackstone is doubling down on its support for its European logistics company Mileway with a €21bn (£17.6bn) reinvestment.
The world’s largest real estate owner today announced that it would recapitalise Mileway, opting to hold onto the business long term rather than pushing ahead with a listing or private sale. Since its launch in 2019, last mile logistics company Mileway has grown to include 1,700 properties comprising 14.7m square meters of space across 10 European countries.
James Seppala, Head of Real Estate Europe, Blackstone, said: “Together with the Mileway management team, we are proud to have built a premier portfolio of European, last mile logistics properties in the most sought-after locations.
As part of the recapitalisation programme existing Mileway investors are being offered the opportunity to retain or increase their shareholding or cash out. According to Mileway, the large majority of capital for the recapitalization is coming from existing investors, “demonstrating their strong conviction” in the sector.
Logistics companies have been given a boost by the rise of online shopping during the Covid-19 pandemic.
“Logistics is one of our highest conviction themes globally and the sector continues to prove its resiliency and strong growth potential. We have delivered a tremendous result for our Blackstone real estate investors and look forward to continuing to create value for investors seeking Core+ returns over the long term,” said Seppala.
US investor Blackstone, which manages $279bn of investor capital, saw shares close down 1.98 per cent yesterday.
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