Blackstone bets €21bn on European logistics

Blackstone announced that existing investors in Mileway, its pan-European last mile logistics company, have agreed to recapitalize the company for €21 billion “and to hold the business for the long term.”

Mileway is the largest owner of last mile logistics real estate assets in Europe with over 1,700 assets across 10 major European countries.

Mileway’s largest markets include Germany, the Netherlands, Sweden, France and the UK and it has a significant presence in Denmark, Italy, Spain, Finland and Ireland.

“Over the past six years, Blackstone and Mileway’s management team have grown the company into the largest last mile logistics portfolio in Europe,” said Blackstone.

“Today it comprises over 1,700 high-quality, last mile logistics assets, amounting to 14.7 million square meters across 10 countries.”

The recapitalization remains subject to a “go-shop” process which will commence immediately.

“In connection with the recapitalization, existing Mileway investors have been offered the opportunity to retain or increase their shareholding, or exit for cash,” added Blackstone.

“The large majority of capital for the recapitalization is coming from existing investors, demonstrating their strong conviction in Mileway and the sector.”

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.

“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.”

Mileway CEO Emmanuel Van der Stichele said: “We have worked closely with Blackstone to create a coveted last mile logistics portfolio that better connects our customers to the businesses and communities they serve.

“Blackstone’s ongoing support will enable us to continue executing on our shared vision for Mileway, Europe’s premier last mile logistics company, as we implement our value enhancing initiatives and development plans in key urban locations across the UK and Europe.”

Blackstone is commencing a “go-shop” process on behalf of Mileway’s current investors, which will be led by Morgan Stanley & Co. International plc and run up to 75 days.

BofA Securities, Eastdil Secured International Limited, Goldman Sachs International, Jones Lang LaSalle Limited, JP Morgan Securities plc, Morgan Stanley & Co. International plc, and Rothschild & Co are serving as financial advisors to the existing investors.