Over the past six years, Blackstone and Mileway’s management team have grown the company into the largest last mile logistics portfolio in Europe. Today it comprises over 1,700 high-quality, last mile logistics assets, amounting to 14.7 million square meters across 10 countries.
In connection with the recapitalization, existing Mileway investors have been offered the opportunity to retain or increase their shareholding, or exit for cash. The large majority of capital for the recapitalization is coming from existing investors, demonstrating their strong conviction in Mileway and the sector.
James Seppala, Head of Real Estate Europe, Blackstone, said:
“Together with the Mileway management team, we are proud to have built a premier portfolio of European, last mile logistics properties in the most sought-after locations. Logistics is one of our highest conviction themes globally and the sector continues to prove its resiliency and strong growth potential. We have delivered a tremendous result for our Blackstone real estate investors and look forward to continuing to create value for investors seeking Core+ returns over the long term.”
Emmanuel Van der Stichele, CEO, Mileway, said:
“We have worked closely with Blackstone to create a coveted last mile logistics portfolio that better connects our customers to the businesses and communities they serve. Blackstone’s ongoing support will enable us to continue executing on our shared vision for Mileway, Europe’s premier last mile logistics company, as we implement our value enhancing initiatives and development plans in key urban locations across the UK and Europe.”
Morgan Stanley & Co. International plc has provided a fairness opinion with respect to the consideration to be received and Eastdil Secured International Limited has provided a real estate value fairness opinion, in each case to the existing investors in connection with the announced transaction. To further confirm this transaction represents the best available outcome for the existing investors, Blackstone is commencing a “go-shop” process on behalf of Mileway’s current investors, which will be led by Morgan Stanley & Co. International plc and run up to 75 days.
BofA Securities, Eastdil Secured International Limited, Goldman Sachs International, Jones Lang LaSalle Limited, JP Morgan Securities plc, Morgan Stanley & Co. International plc, and Rothschild & Co are serving as financial advisors to the existing investors. With the exception of Morgan Stanley & Co. International plc and Eastdil Secured International Limited, each of these advisors may be contacted to support potential bidders in the “go-shop” process. Simpson Thatcher & Bartlett LLP is serving as legal advisor to Blackstone.
Mileway has been rapidly growing its presence and portfolio of last mile properties in Sweden. Across the country, its asset base now consists of more than 160 properties, totalling 1.7 million sqm, with teams in Stockholm, Malmö and Gothenburg, as of Q3 2021.