Blackstone and Tritax Big Box Logistics Deal

Blackstone, one of the world’s biggest property investors, is in advanced talks with London-listed Tritax Big Box Reit over a £1bn logistics deal. This comes just weeks after the two companies were involved in a public bidding war for another industrial property group.

Background of the Deal

The deal, worth around £1bn, would see Blackstone sell logistics assets to Tritax Big Box. Real estate industry sources indicate that while key details have not yet been clarified, a deal could result in Blackstone receiving some of the consideration for the assets in the form of equity in Tritax Big Box.

Potential Outcome

Depending on how much of the deal is paid in shares, Blackstone could become one of Tritax Big Box’s largest shareholders. An announcement about an agreement between the two companies could come within days.

Recent History Between the Companies

A deal would come less than two months after Tritax Big Box withdrew from the Warehouse Reit tender after Blackstone submitted an offer worth almost £500 million for the company. Talks between Blackstone and Tritax Big Box over an asset portfolio deal are said to have begun shortly after the Warehouse Reit dispute was resolved.

Tritax Big Box’s Portfolio

Tritax Big Box is one of the companies benefiting from the increasing demand for industrial storage and logistics facilities. Its sites include a 2.3 million square meter facility on the site of the former Littlebrook Power Station in Kent, with much of this space pre-leased to major companies like Amazon and Ikea.

Investment Plans

Blackstone, which recently pledged to invest £100 billion in Britain in the coming years, and Tritax Big Box declined to comment on the potential deal. The investment would be a significant step in Blackstone’s plans to expand its presence in the UK logistics market.