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Blackstone’s Logicor buys £153m UK logistics portfolio

The New York-based private equity real estate giant has added six logistics properties in the UK to its Logicor portfolio.   

The Blackstone Group’s London-based European logistics property platform has bought a portfolio of logistic properties in the UK from SEGRO, a London-based real estate investment trust (REIT) for £153.3 million (€193.87 million; $241.55 million).

The portfolio includes six logistics properties spread over 1,994,886 square feet across the UK including one small regional warehouse located in eastern England.

The portfolio is fully let and is generating an annualized net rent of £9.3 million, which is estimated to increase to £11.2 million over the next five years, SEGRO said in a statement announcing the sale.

“This disposal enables us to strengthen further our long-term focus on the major logistics hubs and corridors in the UK and continental Europe, which we believe offer the optimal potential to deliver ongoing value and growth for our shareholders,” said Phil Redding, SEGRO’s chief investment officer.

Blackstone has been adding to its logistics assets portfolio across Europe. In August this year, it acquired a portfolio of six logistics assets in Spain from Gran Europa, a local developer. 

According to a statement published on its website in August, Logicor owns around 64 million square feet of logistics properties across 11 countries.

In January last year, the firm also hired Mo Barzegar, a former managing director for Europe at AMP Property Corporation as the president and chief executive officer of the platform.

SEGRO, a developer of owner of industrial space in Europe, owns £481 million of logistics assets in the UK.