LONDON: Tritax Big Box REIT plc (BBOX) announced Monday it has agreed to acquire a £1.035 billion ($1.32 billion) portfolio of logistics properties from funds advised by Blackstone Europe LLP, a move that significantly expands its holdings in the high-demand UK logistics market.
The acquisition, expected to close on or around Oct. 22, 2025, will be funded through a mix of cash and new shares. Tritax will pay £632 million in cash, financed by a new £650 million debt facility, and issue up to 233.11 million new ordinary shares to Blackstone valued at approximately £375 million.
The shares are priced at 161 pence each, a 13.5% premium to BBOX’s closing price on Oct. 10, 2025. Upon completion, Blackstone will become a significant shareholder with an approximately 8.6% stake in the enlarged company.
“This exceptional portfolio offers strong rental reversion and numerous asset management opportunities,” said Colin Godfrey, CEO of Tritax Big Box. “It also significantly broadens our client proposition across key urban logistics markets.”
The portfolio consists of 41 assets totaling 6.5 million square feet, with a focus on urban “last-mile” logistics properties that are crucial for rapid delivery services. The company highlighted the portfolio’s significant near-term rental growth potential, with estimated rental values about 28% above current passing rents.
James Seppala, Chairman of Blackstone Europe and Head of Real Estate Europe, said the transaction reflects Blackstone’s “conviction in BBOX and its market-leading position, as well as our continued conviction in the UK logistics sector.”
The acquisition is expected to be immediately accretive to earnings per share and will increase the company’s gross asset value to approximately £7.9 billion. To manage its balance sheet, Tritax plans targeted disposals of around £300 million in the next 12-18 months.
As part of the deal, Blackstone has agreed to lock-up arrangements for the shares it receives until the end of 2026.