Private equity firm Blackstone has agreed a £120 million (US$138.3 million) deal to buy 22 logistics sites across the UK as online shopping soars in response to the coronavirus pandemic, reported The Financial Times.
Blackstone’s purchase of the portfolio from Clearbell Capital, a private real estate fund manager, follows last week’s £4.2 billion (US$4.8 billion) swoop by rival firm KKR for UK recycling company Viridor.
As mergers and acquisitions dry up globally in the face of the pandemic, private equity investors have continued to be relatively active, betting on sectors such as infrastructure and logistics.
“There will be deals that will fall away, but if the fundamentals are strong on the underlying assets, the deals will occur,” said Manish Chande, senior partner at Clearbell. “We’re not all headless chickens.”
Blackstone’s latest UK acquisition is further evidence of its conviction that ecommerce and delivery services will be an ever larger part of the retail market.
Under its Mileway division, Blackstone has accrued a portfolio of around 1,300 logistics properties across Europe, which were valued at approximately €8 billion in September. The portfolio consists of “last mile” properties—warehouses that are close to city centers and so help cut delivery times.
Full Content: Financial Times
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