Blackstone Combines Warehouse Owners

Posted on 02/12/2024

Blackstone Inc. will create a behemoth in the UK industrial property market with Indurent. Indurent is being made out of the fusion of St Modwen, Industrials REIT, and other properties. St Modwen counts among its clients Amazon, DHL, and XPO. There are over 200 properties involved, to be under the banner of Indurent. Blackstone will seek a way to reap a windfall on the £2.1 billion investment it spent developing the properties.

Warehouses can be fulfillment centers, where products are shipped and stored to consumers. It is believed that up to half of retail sales will be completed through ecommerce platforms by the year 2030. However, not all warehouses are used as fulfillment centers. It is also typical for a warehouse to hold industrial goods or bulk inventory over a medium to long term.

The potential profit could come in the form of a sale or IPO. Blackstone has experience in the sector, having sold Logicor for €12.25 billion to China Investment Corporation. Logicor owns, manages, and develops logistics real estate in key transportation hubs and close to major population centers across Europe.

Keywords: Blackstone Group, LP.

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