New York-based global private equity firm Blackstone (NYSE:BX) agreed to sell its pan European logistics company Logicor, to China’s sovereign wealth fund China Investment Corporation (CIC) for €12.25 billion ($13.82 billion).
Logicor owns and operates a portfolio of high-quality logistics assets totaling 147 million square feet, in 17 countries with over 70% concentrated in the UK, Germany, France and Southern Europe. Located throughout Europe’s major economies, along primary transport corridors and in close proximity to large population centers, the portfolio is ideally positioned to benefit from the structural shift in demand driven by the rapid growth in e-commerce.
Beijing-based CIC was founded in 2007 as a state-owned company serving as a vehicle to diversify China’s foreign exchange holdings. By the end of 2015, CIC’s total assets had surpassed $810 billion.
“We are excited about the company’s future prospects under the new long-term ownership of CIC with whom we will continue to deliver and exceed our customers’ expectations,” said Logicor’s CEO, Mo Barzegar.
“We built Logicor through over 50 acquisitions to be a premier pan European logistics real estate company” said Anthony Myers, Blackstone’s Head of Real Estate Europe. “It will now have an excellent new long term owner, and we have no doubt that it will go from strength to strength in a sector with hugely positive prospects.”
Blackstone’s global real estate business was founded in 1991 and has approximately $102 billion in investor capital under management. Its real estate portfolio includes office, retail, industrial, hotel, and residential properties in the US, Europe, Asia and Latin America. Major holdings include Hilton Worldwide, Invitation Homes (single family homes) and prime office buildings in the world’s major cities. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust.
The deal is expected to close later this year. Eastdil Secured and Goldman Sachs were lead advisors to Blackstone with additional advice provided by PJT Partners, Morgan Stanley, BofA Merrill Lynch and Citigroup. Simpson Thacher & Bartlett acted as legal advisors to Blackstone. UBS acted as financial advisor to CIC. Clifford Chance acted as legal advisors to CIC.