In January, Blackstone bought a €112.5-million (US$121.6 million) portfolio of 26 light industrial assets in France, mostly around Paris, from M7's MStar joint venture with Starwood Capital. M7 will continue to manage the portfolio, according to published reports.

The acquisitions are intended to fatten up Blackstone's Logicor platform, among the largest operators of industrial properties in Europe, before either selling the business or taking it public, the Wall Street Journal reported Tuesday. A sale, representing a bet on the sector's appeal as e-commerce continues to take hold, could be worth more than $US10.8 billion, according to the WSJ report.

Netherlands

LONDON—The Blackstone Group continues to expand its European industrial footprint in advance of a possible sale, partnering with M7 Real Estate Ltd. on Hansteen Holdings Plc's portfolio in Germany and the Netherlands, a deal valued at €1.28 billion (US$1.38 billion). Separately, H.I.G. Capital LLC said Tuesday that it had sold a 2.8-million-square-foot portfolio of light industrial assets in the Netherlands to funds managed by Blackstone; terms were not disclosed.

Morgan Jones and Ian Watson, joint chief executives of London-based Hansteen, call the sale to Blackstone and M7 “a compelling opportunity to crystallize both the revaluation gains from these German and Dutch assets achieved by our active asset management and the gains from foreign exchange movements.” They say the value being realized is around 30% higher than the book value at the end of 2015; it also represents a premium of about 6% on the book value as of year-end 2016.

Jones and Watson add that the sale is “in line with our long-term business and portfolio strategy of buying at a low point in the cycle, with low occupancy and rents, adding value through improved asset management and subsequently realizing the investment at a higher point in the cycle.” M7 will manage the portfolio, according to Hansteen. Shares of Hansteen were up 7% on Tuesday, reaching their highest price in 10 years, Bloomberg Business reported.

Commenting on his company's deal with Blackstone, which Bloomberg reported at €130 million (US$140.5 million), H.I.G. principal Sanjoy Chattopadhyay says “H.I.G. purchased undermanaged assets, and through a series of targeted asset management initiatives and an aggregation strategy, we have built a high-quality portfolio with critical mass, which was successfully sold to a strategic buyer.” H.I.I. owned the Dutch properties in a joint venture with M7, according to Bloomberg.

In January, Blackstone bought a €112.5-million (US$121.6 million) portfolio of 26 light industrial assets in France, mostly around Paris, from M7's MStar joint venture with Starwood Capital. M7 will continue to manage the portfolio, according to published reports.

The acquisitions are intended to fatten up Blackstone's Logicor platform, among the largest operators of industrial properties in Europe, before either selling the business or taking it public, the Wall Street Journal reported Tuesday. A sale, representing a bet on the sector's appeal as e-commerce continues to take hold, could be worth more than $US10.8 billion, according to the WSJ report.