Blackstone mulls sale of 137M sf European warehouse portfolio

Los Angeles /
May.May 20, 2016 08:30 AM

From the New York site: The Blackstone Group is considering either selling its European industrial-property arm in a deal that could value the company at more than $11 billion, or moving forward with an initial public offering that could be one of the largest ever on the continent.

The world’s largest landlord is weighing the sale of its Logicor unit that has about 137 million square feet of logistics space, Bloomberg News reported. The $11 billion valuation would include debt, sources told the news site.

Blackstone is consulting with advisors, but has yet to hire anyone.

If the company decided to list 30 percent of Logicor, it could be one of the largest IPOs ever seen in European real estate. Russian property developer PIK Group PJSC’s 2007 IPO of $1.85 billion is the current record holder.

In 2014 Blackstone scrapped plans for an IPO for its U.S. logistics portfolio IndCor Properties Inc. and sold the company to to GIC, Singapore’s sovereign wealth fund, for $8.1 billion.

Blackstone launched Logicor in 2012 and is looking to reap the financial rewards as demand grows in Europe for logistics properties. Rents for top properties grew last year 2.6 percent and values climbed 12 percent as companies leased the most industrial space ever, according to CBRE data cited by Bloomberg.

While Asia and Europe are the most expensive markets for logistics real estate in the world, the Americas outperformed the global average by nearly 3 percent on a year-over-year basis.

New Jersey ranked second in terms of growth at 15 percent, just behind Oakland, California.

Blackstone’s real estate division had $31.2 billion of dry powder – or committed money from investors that has yet to be spent – at the end of the first quarter, as The Real Deal previously reported.

Jonathan Gray, head of the real estate group, said the United States real estate market is entering a mature phase that tends to limit opportunities for investors that are looking for high yields.

[Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
Burbank Studios with Blackstone's Nadeem Meghji and Jeffrey Worthe (Google Maps)

Blackstone partners with Worthe Real Estate on 500K sf office tower

Blackstone partners with Worthe Real Estate on 500K sf office tower
Jeffrey Worther and Blackstone’s Jonathan Gray with (clockwise from top left) Media Studios, The Point, 3800 Alameda and Central Park (Getty)

Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio

Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio
Victor Coleman and a rendering of the project (Credit: Gensler via Urbanize)

Hudson Pacific wins key approval for 500K sf Hollywood studio expansion

Hudson Pacific wins key approval for 500K sf Hollywood studio expansion
Blackstone CEO Stephen Schwarzman, and the building (Credit: Google Maps)

Blackstone pays $62M for Southeast LA warehouse

Blackstone pays $62M for Southeast LA warehouse
The Tower at Burbank at 3900 West Alameda Avenue with Jeffrey Worthe and Blackstone Group President Jonathan Gray (Getty, Google Maps)

Here’s what tenants pay at Blackstone and Worthe’s Tower at Burbank

Here’s what tenants pay at Blackstone and Worthe’s Tower at Burbank
Blackstone’s Jon Gray and 1777 Center Court Drive in Cerritos (Getty, Google Maps)

Blackstone sells Cerritos office building for $44M

Blackstone sells Cerritos office building for $44M
The sale of the Ace Hotel was the biggest L.A. County hotel buy in 2019 (Credit: Google Maps)

Here are the biggest LA hotel sales of 2019

Here are the biggest LA hotel sales of 2019
Blackstone CEO Stephen Schwarzman and TruAmerica CEO Robert Hart

Blackstone digs deeper into SoCal with massive rental portfolio buy

Blackstone digs deeper into SoCal with massive rental portfolio buy
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...