Private equity powerhouse Blackstone has significantly bolstered its UK logistics portfolio, acquiring £200 million worth of warehouses in the final quarter of 2024, bringing their total annual investment to £1 billion. The strategic purchase of 18 warehouses from PGIM, a division of US investment firm Prudent Financial, marks a substantial expansion of their Indurent platform.
The newly acquired properties are strategically positioned near major urban centres including Manchester, Birmingham, Reading and Leeds. These ‘last mile’ facilities have experienced surging demand since the pandemic, offering rapid delivery capabilities to densely populated areas whilst benefitting from limited supply dynamics that continue to drive rental growth.
James Seppala, Blackstone’s European real estate head, highlighted the UK logistics sector’s appeal, citing robust occupier demand and e-commerce growth as key drivers. The formation of Indurent through the merger of St Modwen and Industrials Reit has established Blackstone as one of Britain’s dominant warehouse landlords, with a portfolio exceeding 200 properties and 2,000 tenants.
Market analysts speculate about a potential future flotation of Indurent, following Blackstone’s £1.8 billion investment in acquiring and expanding the platform. The company’s UK footprint has grown to 3.5 times its original size, reflecting Blackstone’s bullish stance on logistics globally.
Despite recent market challenges, including a 25 per cent decline in warehouse valuations since spring 2022 due to interest rate pressures, industry experts suggest the sector is stabilising. Segro’s chief executive David Sleath’s assessment indicates the market may have reached its cyclical bottom, setting the stage for potential recovery in 2025.
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