Blackstone to sell GBP 1B portfolio of warehouses to Tritax Big Box REIT

Blackstone (BX) has agreed to sell a portfolio of UK warehouses valued at GBP 1B to Tritax Big Box REIT Plc (TTBXF). Tritax will pay GBP 632M in cash and will issue GBP 375M of new shares to Blackstone, giving the New York-based company a stake of about 9% in Tritax. It is expected that the Consideration Shares will be issued in two tranches. The initial tranche of the Consideration Shares will be issued to Blackstone on completion. Any further Consideration Shares, will be issued shortly after completion, following finalization of the completion accounting relating to the holding companies of the Target Portfolio. Blackstone has agreed to enter into a lock-up arrangement in respect of the Consideration Shares until 31 December 2026 and a standstill arrangement until 31 December 2027, in each case subject to customary exceptions. Blackstone will be permitted to sell a small number of Consideration Shares in order to satisfy certain liabilities it may incur in connection with a customary mechanism for post-completion adjustments to the consideration payable under the sale and purchase agreement relating to the Potential Acquisition. James Seppala, Chairman of Blackstone Europe and the Head of Real Estate Europe, commented: “This transaction reflects our conviction in BBOX and its market-leading position, as well as our continued conviction in the UK logistics sector. This portfolio represents a rare aggregation of high-quality properties with meaningful embedded rental growth potential. The Tritax team’s strong asset management track record make them an excellent steward for these assets in the future. Our decision to take an ownership stake in BBOX as part of this transaction reflects our belief in the Company’s long-term strategy and outlook, and we are excited by the opportunity to participate in the future success of the enlarged business.”