The Blackstone Group is considering selling Logicor, its European logistics business, in a transaction that would potentially value the platform, including debt, at €11 billion.
Although discussions of a sale are in the very early stages, it is understood the firm is exploring two options: either proceeding with an initial public offering or disposing of the assets as early as this summer. Blackstone and Logicor declined to comment.
Should Blackstone decide to float Logicor, the logistics business could seek an equity valuation of approximately €5.5 billion, according to a Bloomberg report. Even if the New York-based investment manager decided to list a quarter of Logicor, it could be one of the largest offerings in European real estate.
It is understood that Blackstone is looking to sell because demand for logistics properties on the continent, from both tenants and investors, has increased.
The London-based logistics business, which has warehouses in the UK, France and Germany, has around 137 million square feet of rented logistic space with tenants such as Amazon.
Any sale could potentially eclipse Blackstone’s 2014 sale of its US logistics business IndCor Properties Inc. to Singapore’s sovereign wealth fund, which worked out at $8.1 billion.
Similar to its current situation with Logicor, Blackstone considered an initial public offering for IndCor but instead opted for a sale.
In April last year, Logicor acquired 6 million square feet of UK logistics space from an Oaktree Capital Management and Anglesea Capital joint venture for £400 million ($607 million; €558 million). The asset comprised a portfolio of 16 UK warehouses and was purchased on behalf of the Blackstone Real Estate Partners Europe IV vehicle.
In November 2014, the platform bought a portfolio of six UK logistics properties from SEGRO, a London-based real estate investment trust for £153.3 million.