The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Blackstone in 'Largest Ever' Private Real Estate Transaction

Blackstone in Largest Ever Private Real Estate Transaction
17 February 2022

Blackstone has recapitalised its logistics business in a €21 billion deal.

Investors of Mileway, the European logistics arm of Blackstone, will be offered the opportunity to retain or increase their shareholding, or exit for cash.

According to Blackstone’s statement, the majority of capital for the recapitalisation is coming from existing investors.

The recapitalisation remains subject to a “go-shop” process led by Morgan Stanley, in the event that a higher bidder comes in externally.


What is Recapitalisation?


In the simplest terms, recapitalisation is a process where a company’s debt and equity is restructured to either stabilise a company’s financial situation or as a strategy to protect share prices.

There are also several other reasons for recapitalisation, such as preventing a hostile takeover from an outside company or as part of the bankruptcy process.

The process usually involves exchanges of forms of finance. In the case of Blackstone and Mileway, new investors will buy into Mileway, whilst existing shareholders will either keep or increase their shares, or sell out for cash.


Industrial and Warehouse Space Booming


Market analysis shows that in 2021, much of the UK’s commercial property sector was riven by the industrial property sector - factories, warehouses, distribution units, - with the number of transactions increasing from 699 in 2020 to 892 in 2021, a rise of 28 per cent. 

Thanks to a rise in online shopping during and post-pandemic, and the resulting need for additional industrial storage, warehouse space is now a “central plank of many real estate investors’ strategies for the first time,” according to the Financial Times.

Comments from Blackstone and Mileway both indicate this. James Seppala, Head of Real Estate Europe, Blackstone, said: Logistics is one of our highest conviction themes globally and the sector continues to prove its resiliency and strong growth potential.”

Picture: a photograph of a warehouse. Industrial shelving can be seen in the background, as can several members of staff in uniform. Image Credit: Unsplash

Article written by Ella Tansley | Published 17 February 2022


Related Articles

FT Reports Prologis Bid on Blackstone’s Logistics Business

According to the Financial Times, Prologis has made a bid on Blackstone’s €21 billion logistics and warehouse arm. Prologis has allegedly made “a...

 Read Full Article
BAM FM Wins Hard FM Contract With

BAM FM has been awarded a three-year hard facilities management contract with online home and lifestyle retailer The contract will encompass both mechanical...

 Read Full Article
Landsec Purchases 75% Stake in MediaCity

Landsec has acquired a majority stake in MediaCity, the 37-acre media, digital and tech hub in Salford, Greater Manchester, for £425.6 million. Indicating...

 Read Full Article
CBRE Completes Majority Ownership of Turner & Townsend

CBRE has acquired a 60 per cent ownership interest in Turner & Townsend. The companies have also entered into a strategic partnership, whereby CBRE and Turner...

 Read Full Article
Hines Acquires Property Management Firm, Helix

Hines, the international real estate firm, will take over Helix’s team of 60 property management professionals. Operating from its offices in the West End of...

 Read Full Article
Global Net Lease Acquires McLaren Group Headquarters

Global Net Lease has announced that they are to acquire the site that serves as the current world headquarters for McLaren's Automotive, Racing, and Applied...

 Read Full Article
MRI Software Acquires FSI

FSI is now officially operating under the MRI Software brand, after the business was acquired in August 2021. The combined team now provides an expanded offering, as a...

 Read Full Article
Incentive FM Acquired by Atalian Servest

Atalian Servest, one of the world’s largest facilities services providers, has acquired Incentive FM Group. The deal will allow Atalian Servest to expand its...

 Read Full Article
HqO Workplace Experience Platform Acquires Leesman

Leesman, the workplace experience assessment benchmark company, is to be acquired by HqO, the workplace experience platform. “This is a huge step for...

 Read Full Article
What Does The Coronavirus Bill Mean For Commercial Landlords and Tenants?

The Commercial Rent (Coronavirus) Act 2022 has recently been passed into law – ending the extended moratorium on tenant evictions for non-payment of...

 Read Full Article