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Blackstone merges logistics property platforms

12 February 2024

US private equity firm Blackstone has decided to merge two of its industrial and logistics platforms, St Modwen Logistics, and Industrials REIT, into one company providing one of the largest industrial property REITs in the UK after SEGRO and Tritax.

By Liza Helps Property Editor Logistics Matters

THE NEWS comes hot on the heels of the announcement that Tritax and Commercial Property REIT are merging, which was announced only this morning.

Blackstone only acquired multi-let industrial estate specialist Industrials REIT  last year for £511 million roughly two years after  paying £1.2 billion for St Modwen. Both companies were taken private on acquisition.

It is believed that the new business, to be known as Indurent, has around 200 properties totalling 26 million ft2.

Blackstone head of European real estate James Seppala, said: “UK logistics is a high conviction theme for Blackstone given our portfolio’s exceptionally strong performance and favourable long-term fundamentals in the sector. As a pure-play UK logistics company with an exceptional team, Indurent, will enable us to continue to capitalise on opportunities in the sector and create value for our investors.”

While Industrial REIT specialised in multi let industrial estates typically of five to 50 units with size ranges of 500 – 20,000 ft2, St Modwen Logistics develops and manages urban and big box warehouses for customers including global logistics and e-commerce organisations as well as significant national and regional enterprises.

In 2022, the St Modwen delivered 2.2 million ft2 of new warehouse space and looked to develop 1.3 million ft2 in 2023. It has one of the UK’s largest development pipelines of c. 21 million ft2. According to its website the company currently owns and manages a 10 million ft2 logistics portfolio, with a further 7.3 million ft2 of property consented and 6 million ft2  currently going through the planning process. It owns some 6,000 acres of land.

The combined business will be led by Industrials chief executive Julian Carey. Industrials REIT  has developed a variety of management tools including Industrials HIVE  and the Smart Lease, which allows it to tailor its offering to customers many of whom are SMEs and have never before signed commercial leases. It is thought that the new Indurent platform will look to leverage these management tools across the larger properties as well providing an enhanced customer service.

Last month St Modwen