Blackstone intends to merge its St Modwen Logistics and Industrials REIT businesses to create a UK industrial and logistics powerhouse.
The new business will be called Indurent and it will operate a portfolio of 200 properties providing circa 26m sq ft of industrial and logistics space.
James Seppala, head of European real estate at Blackstone, said: “UK logistics is a high conviction theme for Blackstone given our portfolio’s exceptionally strong performance and favourable long-term fundamentals in the sector. As a pure-play UK logistics company with an exceptional team, Indurent will enable us to continue to capitalize on opportunities in the sector and create value for our investors.”
In a statement published on LinkedIn Industrials REIT said: “Today marks an important milestone for our business as we announce that we will be taking on the management of St Modwen Logistics portfolio of assets. By leveraging the considerable strengths of both businesses, we will provide a best-in-class experience for our valued customers, dedicated staff and everyone else we work with. The transition will see the integrated business grow its combined portfolio significantly to consist of over 200 assets, totalling more than circa 26m sq ft.
“The UK’s industrial and logistics market continues to present strong opportunities, and as we enter this new chapter for the business, our name and identity will also evolve. Once the integration has been completed, the business will be renamed Indurent. The name is designed to articulate the strength of the business we are building to set us up for the next phase of growth. We will continue operating as Industrials REIT for now, with further details on the new brand identify to be shared in due course.”
The news comes close on the heels of Tritax Big Box REIT and UK Commercial Property REIT agreeing the terms of an all-share merger to create an industrial and logistics REIT with a market capitalisation of circa £3.9bn.
