Blackstone takes stake as Tritax expands urban logistics in $1.62bn (£1.04bn) deal
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Tritax Big Box has announced the acquisition of a £1.035 billion logistics real estate portfolio from Blackstone Europe, a move that significantly strengthens its position in the UK warehouse investment market. As part of the deal, Blackstone will also acquire an 8.6 percent equity stake in Tritax, reinforcing confidence in the logistics real estate UK sector.
The transaction is expected to close by 22 October 2025 and will be financed through £632 million in cash and the issue of over 233 million new BBOX ordinary shares at 161 pence per share.
Expanding the urban logistics footprint
The portfolio includes 6.5 million square feet across 409 units, enhancing Tritax’s small box and urban logistics capabilities. Only 28 percent of tenants are existing BBOX clients, which broadens Tritax’s exposure to new occupiers. This aligns with the company’s strategy to grow its last mile delivery real estate offering.
Assets are concentrated in high-demand regions, with 36 percent located in the South East. The acquisition includes 32 urban logistics and nine big box properties, further diversifying the portfolio.
Tritax reports that the average passing rent is £8.23 per square foot, with an estimated rental value of £10.49. This represents a rental reversion potential of approximately 28 percent while remaining affordable for logistics clients.
Strengthening strategic position in industrial property
Colin Godfrey, chief executive of Tritax Big Box, said the deal advances the company’s strategy by offering rental upside and asset management opportunities. He highlighted that the acquisition will raise Tritax’s gross asset value to over £7.9 billion.
Blackstone’s equity stake also brings a long-term investment partner with deep expertise in the logistics and industrial property acquisition space. James Seppala, chairman of Blackstone Europe, noted, “Our decision to take an ownership stake reflects our belief in Tritax’s long-term strategy.”
Market momentum in warehouse investment
The Tritax and Blackstone partnership arrives amid a flurry of activity in UK logistics real estate. Blackstone recently won a competitive takeover battle for Warehouse REIT with a £489 million cash offer, and is also reported to be considering a move on self-storage REIT Big Yellow Group.
As demand for last mile delivery infrastructure continues to grow, especially in urban locations, investors are increasingly viewing warehouse investment in the UK as a resilient, long-term asset class. The Tritax acquisition signals continued confidence in the sector’s fundamentals.