LONDON: Warehouse REIT plc has agreed to a recommended cash acquisition by Wapping Bidco Ltd, a newly formed company backed by investment funds advised by affiliates of Blackstone Inc., in a deal valuing the real estate investment trust at approximately £470 million ($600 million).
Under the terms of the deal, announced Wednesday, shareholders of Warehouse REIT will receive 109 pence per share in cash, plus a previously declared interim dividend of 1.6 pence per share, bringing the total consideration to 110.6 pence per share.
The acquisition will be implemented through a court-sanctioned scheme of arrangement under U.K. company law. The boards of both Warehouse REIT and Bidco have unanimously recommended the offer to shareholders.
The transaction follows an initial announcement on May 30 and remains subject to approval by shareholders and regulatory conditions. Further details will be outlined in a formal scheme document to be issued in due course.
Warehouse REIT, which specializes in industrial and logistics properties, is the latest target in Blackstone’s expanding European real estate portfolio.
Warehouse is a UK real estate investment trust focused on industrial assets in key locations, with 80% of its portfolio in multi-let warehouses. These properties offer rental growth opportunities amid strong demand and limited supply. The remaining portfolio includes single-let regional and last-mile assets.
Warehouse is externally managed by an investment advisor responsible for asset management. Listed in September 2017, it raised £150 million for industrial and logistics sector investments. Since its IPO, it has raised an additional £275 million, building a diverse portfolio primarily focused on multi-let estates, which provide flexibility for tenants. As of March 31, 2025, the portfolio was valued at £805.4 million, covering 6.9 million square feet with annual rent of £42.5 million.
As of February 28, 2025, Warehouse had a market capitalization of approximately £350 million. By March 31, 2025, it held unaudited net tangible assets of £544 million, with a net tangible asset value per share of 128 pence.
Blackstone, a global investment firm, manages $1.1 trillion in assets across real estate, private equity, credit, and infrastructure. Its real estate division, founded in 1991, oversees $320 billion in investor capital. As of March 31, 2025, Blackstone owned a €127 billion European portfolio spanning logistics, housing, offices, hospitality, retail, and digital infrastructure.
Blackstone is active in urban logistics and industrial segments. Its Mileway platform manages 200 million square feet of last-mile logistics real estate, including 60 million in the UK. Indurent, formed from St Modwen Properties and Industrials REIT, has a 30 million-square-foot logistics portfolio and a 6 million-square-foot development pipeline.
Warehouse Chairman Neil Kirton noted strong performance since its 2017 IPO, with portfolio growth and an annualized accounting return of 7.7%. However, macroeconomic challenges have hindered expansion. The independent directors believe Blackstone’s cash offer, at a 34.2% premium, benefits shareholders.
James Seppala, head of Blackstone Real Estate Europe, expressed confidence in UK logistics demand and emphasized Blackstone’s long-term commitment, citing £35 billion in UK investments supporting 40,000 jobs over two decades.