Real estate business Burstone Group has entered into the “largest logistics transaction to be agreed in Europe in 2024” with Blackstone, a real estate investing firm.
The partnership follows Blackstone’s acquisition of an 80% stake in Burstone’s €1.1 billion Pan-European Logistics platform, with Burstone retaining the remaining 20%.
The portfolio, assembled since 2017, consists of 32 high-quality midsize and big-box logistics properties across key European urban centres in seven countries, including Germany, France and the Netherlands. Burstone’s Europe team, led by managing director Paul Rodger, will continue to manage the portfolio.
Spanning 1.2 million square meters, the portfolio is 97% occupied by over 110 tenants, primarily in the third-party logistics sector, benefiting from strategic locations with excellent transport connectivity.
The partnership aims to leverage current market conditions to expand its portfolio of mid and big-box logistics properties across core European markets. The deal is expected to accelerate Burstone’s international fund and investment management strategy.
Andrew Wooler, CEO of Burstone Group, highlighted the strategic importance of the partnership, stating, “The European logistics sector, where we have a market-leading team, remains one of our key investment themes. Despite higher rates, now is a compelling time to grow, driven by nearshoring trends, supply chain reconfiguration, and e-commerce penetration.”
He added that the partnership with Blackstone allows Burstone to “retain a significant investment in Europe while expanding our fund and investment management model.”
James Seppala, head of European real estate at Blackstone, emphasised the synergy between the two firms, noting, “Logistics is one of our highest conviction investment themes globally. This exceptionally well-located portfolio allows us to capitalise on growing e-commerce trends across Europe.”
