China’s CIC buys Blackstone’s Logicor warehouse unit for €12.25bn
China Investment Corporation, the Asian country’s sovereign wealth fund, has agreed to buy Logicor, a pan-European logistics company, from Blackstone for EUR12.25bn, the US buyout group said in a statement late Friday. This is the second-largest European real estate transaction on record and the fourth-largest international Chinese takeover to date, according to Dealogic. “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, in a brief statement.
“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.” CIC had competition from Mapletree Investments and Temasek, a joint venture consisting of two Singapore state funds, according to a person familiar with the auction process. Global Logistic Properties, a company controlled by Singapore’s sovereign wealth fund GIC, also lost out in the process, according to local trade press reports.
Warehouses are seen as having huge value to ecommerce companies such as Amazon. Logicor owns over 600 properties in Europe, representing a total of 13m square metres of warehouse space. In recent years, the logistics company has focused in growing its business in mainland Europe, where online shopping is less developed than the UK.
The deal is expected to close later this year. Eastdil Secured and Goldman advised Blackstone alongside PJT Partners, Morgan Stanley, BofA Merrill Lynch and Citigroup. Simpson Thacher & Bartlett acted as legal advisors to Blackstone.
CIC was advised by UBS.
Clifford Chance acted as legal advisors to CIC.