American investment firm Blackstone has officially acquired UK-based Warehouse REIT for €576 million (£489 million), reinforcing its long-term strategy to expand its footprint in European logistics real estate. The deal highlights the growing institutional interest in warehouse assets as e-commerce and last-mile delivery continue to drive demand across the continent.
Deal Overview
The agreed price of €576 million reflects a cash offer of 115 pence per share, including 113.4 pence paid directly and a 1.6 pence final dividend. The offer represents an 8.3% premium over the June 3, 2025 share price and a 34% premium over the February valuation. The Warehouse REIT board unanimously supported Blackstone’s improved offer, abandoning a previously endorsed merger with Tritax Big Box REIT.
This all-cash deal offers shareholders immediate liquidity and a clean exit, with no equity component or future valuation uncertainty.
Strategic Importance for Blackstone
The acquisition aligns with Blackstone’s ongoing logistics investment drive, which has included over €10 billion in warehouse acquisitions in recent years. Blackstone’s strategy focuses on assembling a pan-European logistics platform with scalable rental income and operational efficiencies.
Warehouse REIT’s portfolio, primarily consisting of urban distribution and last-mile facilities in the UK, will integrate with Blackstone’s holdings in Germany, France, the Netherlands, and Spain. The firm’s previous deals, such as the purchases of UK Industrials REIT and St. Modwen, show a clear pattern of consolidating high-demand logistics properties.
Logistics Sector Resilience
Logistics real estate remains one of the most resilient sectors in commercial property. Even as higher interest rates and inflation dampen other real estate segments like offices and retail, warehouses are seeing consistent rental growth.
Yields in urban logistics hubs range from 4.5% to 6%, with vacancy rates at historical lows in many key markets. According to CBRE and Savills, European logistics transaction volumes reached €34 billion in the first half of 2025, with demand strongest in the UK, Germany, and Benelux countries.
Implications for Shareholders
Warehouse REIT shareholders benefit from:
- A competitive cash premium
- Certainty of value in a volatile market
- No dilution or future stock price exposure
- Inclusion of final dividend
The board described Blackstone’s proposal as “superior in value and certainty” compared to the alternative merger. For retail and institutional investors alike, the deal marks a favorable outcome amid suppressed public valuations in the REIT sector.
Wider Market Trends
This acquisition follows a trend of REIT privatizations, with institutional investors taking advantage of discounted market valuations. Since 2023, over €5 billion worth of UK-listed real estate has been privatized or targeted for buyouts.
The logic is simple: many public REITs trade at 20–40% discounts to net asset value (NAV), while their underlying portfolios remain strong in terms of occupancy and rent collection. For Blackstone and peers, such conditions create ideal opportunities for strategic acquisition.
Reaction and Outlook
Industry analysts welcomed the deal, citing it as validation of the logistics sector’s long-term fundamentals. Several noted that Blackstone’s disciplined strategy offers a roadmap for others looking to rebalance portfolios toward stable, income-producing real estate.
The transaction also raises expectations of more consolidation in the sector, especially among mid-cap REITs with strong assets but weak market valuations. Private equity interest remains high, especially from U.S.-based funds seeking exposure to Europe’s supply chain infrastructure.
Conclusion
Blackstone’s €576 million acquisition of Warehouse REIT marks a pivotal move in the ongoing consolidation of European logistics real estate. It reflects the strong fundamentals and investor confidence in the sector and offers a timely exit for REIT shareholders amid a challenging market. As logistics continues to outperform traditional asset classes, more institutional players are likely to follow Blackstone’s lead—driving further growth, integration, and innovation in Europe’s warehouse economy.
