Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

Blackstone Confirms $13.8B Sale of European Logistics Platform to CIC

2017/06/03 by Michael Cole Leave a Comment

Anthony Myers Blackstone

Blackstone European real estate chief Anthony Myers

Ending days of speculation and months of negotiations, Blackstone Group on Friday confirmed an agreement to sell its Logicor European logistics platform to China Investment Corporation (CIC) for €12.25 billion ($13.82 billion).

The sale by a set of funds controlled by Stephen Schwarzman’s alternative investment giant is the largest real estate transaction in history and caps nearly $35 billion in Blackstone sales of assets and equity to Chinese buyers in less than four years.

The sale agreement followed reports early in the week that Blackstone had locked into talks with the Chinese sovereign wealth fund for the 147 million square foot (13.7 million square metre) warehouse provider, after earlier considering bids from Singapore’s Global Logistic Properties as well as from a joint venture between the city’s state’s Temasek Holdings and real estate investment house Mapletree.

CIC Picks Up Pan-European Warehouse Portfolio

Logicor warehouse

Hard at work in a Logicor facility in Europe

The purchase gives CIC a fleet of investment grade warehouses across 17 European countries, with over 70 percent concentrated in the UK, after Blackstone had stitched together a number of logistics space providers into a united platform.

“We built Logicor through over 50 acquisitions to be a premier pan European logistics real estate company,” Anthony Myers, Blackstone’s head of real estate for Europe said in a statement. Eastdil Secured and Goldman Sachs were lead advisors to Blackstone on the transaction, which is expected to close later this year. UBS acted as the financial advisor to CIC with Clifford Chance providing legal assistance to the Chinese fund.

Nearer to its home base in Asia, CIC is competing with Blackstone and global private equity player Warburg Pincus to buy out $10.3 billion Singapore-listed logistics platform Global Logistic Properties. CIC already owns a substantial stake in GLP’s mainland operation.

Even prior to these warehouse discussion, Blackstone and CIC have been well acquainted for at least a decade. The Chinese state-level fund, which is charged with investing the country’s foreign reserves, spent $3 billion for 9.99 percent stake in Blackstone at its IPO in 2007. CIC later upped that stake to 12.5 percent in 2008.

China Has Been Good to Blackstone

For Blackstone, its top level relationships in China has brought the investment manager much more than just that early equity stake.

blackstone Chinese sales

Major sales of assets and equity to Chinese firms by Blackstone since 2013. Source: Mingtiandi, various

The Logicor deal is the latest in a series of sales of assets and equity to Chinese investors that have brought in over $34.9 billion for the investment manager and its funds since they sold an office park near London to CIC for GBP 800 million (then $1.28 billion) in November 2013.

Since that time Schwarzman and his team of investment managers have made an art of selling real estate and other assets to mainland Chinese entities including more than $10 billion in deals with Beijing-based Anbang Insurance. Blackstone has also been involved in more than $2 billion in transactions with the mainland’s second-largest property developer by sales, China Vanke.

Among the best known Blackstone to China sales was the $1.95 billion 2014 sale of the Waldorf Astoria Hotel to Anbang by Hilton Hotels Worldwide. Blackstone is the controlling shareholder in the hotel chain, and later brought in $6.5 billion selling a stake in Hilton to China’s HNA Group.

Related Stories

  • Blackstone Buys Back 10% of European Warehouse Platform Logicor from CICBlackstone Buys Back 10% of European Warehouse Platform Logicor from CIC
  • CIC, GLP and Mapletree Compete for Blackstone’s $14.1B in European WarehousesCIC, GLP and Mapletree Compete for Blackstone’s $14.1B in European Warehouses
  • CIC Said Buying Logicor From Blackstone for $13.4BCIC Said Buying Logicor From Blackstone for $13.4B
  • Logos Aims for $2.3B Aussie Portfolio After Sydney, Singapore AcquisitionsLogos Aims for $2.3B Aussie Portfolio After Sydney, Singapore Acquisitions

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Logistics Tagged With: Blackstone, China Investment Corporation, CIC, daily-sp, Featured, Logicor, Logistics, Outbound investment

MTD Proptech Report Download

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Yardi Proptech Report

Get Mingtiandi Delivered

Sustainability Forum

MTD TV

MTD TV Interview with Jeffrey Perlman of Warburg Pincus Now Online

Investors Boost APAC Logistics Deals Amid E-Commerce Boom

More MTD TV Videos

Latest Stories

Darren Searle Logos

KKR, Abu Dhabi Fund Back A$1B Logos Development Venture in Australia

Wang Jianlin Sun Hongbin Li Sze-Lim

Wanda Topped Mainland Commercial Developers Again in 2020 Despite 13% Income Drop

crown sydney

Blackstone Ties $6B Crown Offer to Licences and More Asia Real Estate Headlines

Sponsored Features

Tony Horrell

Colliers’ Global Investor Sentiment Report Anticipates Up to 50% Surge in Investment in 2021 Sponsored Feature

Andrew-Slevin-John-Foord (4)

Insurtech to Help Address Underinsurance Across Asian Real Estate Assets in 2021 Sponsored Feature

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

Data Centre Startup Princeton Digital Lands $230M in Financing as China…Data Centre Startup Princeton Digital Lands $230M in Financing as China Platform Grows

Sun Hung Kai & Co Launches $300M Debt Vehicle to Grow Fund…Sun Hung Kai & Co Launches $300M Debt Vehicle to Grow Fund Management Business

Singapore’s Frasers Hospitality Trust Names Eu Chin Fen as CEOSingapore’s Frasers Hospitality Trust Names Eu Chin Fen as CEO


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team