Blackstone declares €21 billion Mileway recapitalisation

KUALA LUMPUR, Feb 15 -- Blackstone, the largest owner of commercial real estate globally, has announced that existing investors in Mileway, its 14.7 million square metre pan-European last mile logistics company, have agreed to recapitalise the company for €21 billion alongside Blackstone’s Core+ strategy, and to hold the business for the long term. (€1 = RM4.734)

The recapitalisation remains subject to a ‘go-shop’ process which will commence immediately.

Over the past six years, Blackstone and Mileway’s management team have grown the company into the largest last mile logistics portfolio in Europe. Today it comprises over 1,700 high-quality, last mile logistics assets, amounting to 14.7 million square metres across 10 countries.

In connection with the recapitalisation, existing Mileway investors have been offered the opportunity to retain or increase their shareholding, or exit for cash. The large majority of capital for the recapitalisation is coming from existing investors, demonstrating their strong conviction in Mileway and the sector.

In a statement, James Seppala, Blackstone Head of Real Estate Europe said: “Together with the Mileway management team, we are proud to have built a premier portfolio of European, last mile logistics properties in the most sought-after locations.

“Logistics is one of our highest conviction themes globally and the sector continues to prove its resiliency and strong growth potential. We have delivered a tremendous result for our Blackstone real estate investors and look forward to continuing to create value for investors seeking Core+ returns over the long term.”

Mileway CEO, Emmanuel Van der Stichele said: “We have worked closely with Blackstone to create a coveted last mile logistics portfolio that better connects our customers to the businesses and communities they serve.

“Blackstone’s ongoing support will enable us to continue executing on our shared vision for Mileway, Europe’s premier last mile logistics company, as we implement our value enhancing initiatives and development plans in key urban locations across the UK and Europe.”

BofA Securities, Eastdil Secured International Limited, Goldman Sachs International, Jones Lang LaSalle Limited, JP Morgan Securities plc, Morgan Stanley & Co. International plc, and Rothschild & Co are serving as financial advisers to the existing investors. Simpson Thatcher & Bartlett LLP serves as legal adviser to Blackstone.

-- BERNAMA