As the private equity giant boosts its bet on demand for speedy goods delivery, Blackstone Inc is leading a 21 billion euro ($23.81 billion) recapitalization of Mileway, Europe’s largest operator of urban warehouses.
Rather than listing the company or seeking a private sale, the US investor has decided to recapitalize the logistics firm, Europe’s largest owner of last-mile logistics, as consumers globally want same-day delivery of groceries and other commodities.
“Logistics is one of our highest conviction themes globally and the sector continues to prove its resiliency and strong growth potential,” James Seppala, Blackstone’s head of Real Estate Europe, said.
Mileway was founded by Blackstone in 2019 to manage the more than 1,000 logistics assets the private equity firm purchased to expand its last-mile delivery business to tenants in its buildings.
Existing Mileway investors have been given the option to keep or increase their stake in the company, or to sell their shares for cash, according to the corporation. A “go-shop” mechanism is in place for the recapitalization, giving Mileway time to see whether a better bargain can be obtained for shareholders.
Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.