Tritax Big Box has agreed to acquire a portfolio of logistics assets valued at £1.035bn from real estate funds advised Blackstone Europe.
The deal, which is due to be completed on or around 22 October 2025, will also see the US-headquartered real estate investment giant take a stake of 8.6% in Tritax, which controls the largest logistics-focused land platform in the UK.
The acquisition will be funded by £632m in cash and up to 233.11 million new BBOX ordinary shares to be issued at a price of 161p per share.
According to Tritax’s Board, the acquisition “adds a high quality, well located urban logistics weighted portfolio of scale with rental reversion potential of around 28%… which would be difficult to replicate through piecemeal acquisition strategy”.
Specifically, the target portfolio adds 6.5 million ft2 across 409 units, enhancing the Tritax’s urban/small box offering and broadening its tenant base, with just 28% existing BBOX clients
It includes 32 urban logistics/small box and nine big box assets in core regions of the UK, notably the South East (36%).
The assets within the portfolio have an average passing rent of £8.23/ft2 and an estimated rental value of £10.49/ft2, “offering the opportunity for income growth whilst remaining affordable to clients”, Tritax said.
Tritax’s Board noted that shorter-dated last mile and urban leases are complemented by modern, high specification big box assets generating significant and resilient income.
Colin Godfrey, BBOX CEO, explained the portfolio acquisition aligns with the company’s strategic objectives by offering “strong rental reversion and numerous asset management opportunities”.
“It also significantly broadens our client proposition across key urban logistics markets and reinforces our leading position in mission critical big boxes; in combination growing our GAV [gross asset value] to over £7.9bn,” Godfrey added.
Welcoming Blackstone as a new shareholder in Tritax Big Box, Godfrey explained that its investment at a material share price premium reinforces the positive outlook for both Tritax’s business and the broader market.
Chairman of Blackstone Europe, James Seppala, added: “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.”
The news comes amid press reports that Blackstone Europe is considering a bid for self-storage REIT Big Yellow Group.
