Blackstone Inc. (BX) shares are trading slightly lower premarket Tuesday, following the announcement of two major acquisitions in the logistics and data center sectors.
Firstly, Blackstone affiliates have reached an agreement to acquire an 80% stake in Burstone Group’s Pan-European Logistics (PEL) platform for €1.022 billion (R20 billion). This strategic move grants Blackstone control over a portfolio of 32 strategically located logistics properties across seven European countries, primarily Germany, France, and the Netherlands. The properties, spanning a total area of 1.2 million square meters, are 97% leased to over 110 tenants, primarily third-party logistics companies who benefit from the strategic locations and excellent transport connectivity.
Burstone will retain a 20% stake in the PEL platform and will continue to manage the portfolio’s assets. This partnership will focus on expanding the PEL portfolio through the acquisition of additional industrial and logistics properties in key European markets. The deal is expected to provide immediate cash proceeds of €250 million to Burstone.
James Seppala, Head of European Real Estate at Blackstone, highlighted the company’s commitment to the global logistics sector. He stated, “Logistics is one of our highest conviction investment themes globally. This exceptionally well-located portfolio of assets in core logistics markets across Europe is additive to our existing portfolio and allows us to continue to capitalise on customer demand, including as a result of growing e-commerce penetration trends across the continent.”
In a separate transaction, Blackstone, along with the Canada Pension Plan Investment Board, is reportedly nearing the acquisition of Sydney-based data center company AirTrunk from Macquarie’s asset management arm for A$20 billion ($13.5 billion). This deal, if finalized, would be the largest transaction in Australia this year and reflects Blackstone’s bet on the growth of cloud computing and artificial intelligence. Blackstone was competing with a consortium of private equity firm Silver Lake and asset manager DigitalBridge for AirTrunk, according to the Financial Times.
Investors seeking exposure to Blackstone’s investment activities can explore the EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO and Invesco Global Listed Private Equity ETF PSP.
Blackstone’s recent acquisitions highlight its strategic focus on the growing global logistics and data center markets. These investments demonstrate the company’s confidence in the continued expansion of e-commerce and cloud computing, which are driving demand for these critical infrastructure assets.
