Tritax Big Box REIT has struck a £1.01 billion deal to acquire a vast portfolio of UK warehouses and logistics estates from Blackstone, marking one of the biggest property transactions of 2025.
The acquisition includes nine “megasheds” — vast distribution centres lining key motorways — and 32 urban trading estates situated around major cities including London, Manchester, Birmingham, and Bristol.
Under the terms of the deal, Blackstone will become Tritax Big Box’s second-largest shareholder, taking a stake of almost 9% in the London-listed logistics landlord.
Tritax is funding the acquisition with £632 million in cash, supported by new debt facilities, and £375 million in newly issued shares priced at 141.9p each — a 13.5% premium to Friday’s closing price. Shares in Big Box rose 4p, or 2.9%, to 146p on Monday following the announcement.
The transaction cements Tritax’s position as the UK’s leading logistics property owner, expanding its portfolio to £7.9 billion of assets nationwide once the deal completes next week.
The purchase strengthens the landlord’s relationships with major tenants including Amazon, Tesco, and B&Q, while also introducing new occupiers such as DHL and WH Smith.
“This is a huge endorsement,” said Colin Godfrey, chief executive of Tritax Big Box.
“It’s fantastic to have Blackstone on board and supporting our business. Their backing underlines confidence in our strategy and in the strength of the UK logistics sector.”
James Seppala, head of European real estate at Blackstone, said the deal underscored the firm’s continued belief in UK logistics.
“This transaction reflects our conviction in Tritax Big Box and its market-leading position. The team’s strong asset management track record makes them excellent stewards for these assets.”
The acquisition marks a major move into the fast-growing urban logistics segment — smaller, strategically located warehouses that sit closer to consumers to enable faster delivery.
Rents for these city-fringe properties have risen sharply since the pandemic as e-commerce firms, supermarkets, and parcel operators compete for space near population centres.
Analysts say the trend is being fuelled by the scarcity of available industrial land within cities, as older warehouse sites are sold to residential developers.
Tritax’s new urban portfolio, combined with its motorway “big box” assets, creates a more diversified logistics network. About 80% of the company’s holdings remain large regional distribution centres, while 20% will now be urban warehouses.
The newly acquired properties currently generate £53 million in annual rent, but valuers estimate the figure could climb to £67 million if all leases were renewed at current market rates. That gap is expected to narrow over the next few years as existing contracts expire.
Some of the properties included in the sale were previously owned by St Modwen, which Blackstone took private in a £1.3 billion deal in 2021. The firm is now selling because the assets were held in closed-ended funds that are reaching maturity.
The disposal is unlikely to silence speculation that Blackstone may soon float Indurent, its vast UK warehouse platform, as it continues to recycle capital across its global logistics portfolio.
Godfrey said the timing of the deal was “very, very fortunate.”
“If we’d approached Blackstone in a stronger macroeconomic market, this kind of off-market opportunity simply wouldn’t have been available to us,” he said. “We’ve acquired an exceptional portfolio at the right time.”
The deal highlights how investor appetite for logistics remains robust even as wider commercial property markets face pressure from high interest rates and tighter financing.
With e-commerce, retail supply chains, and rapid fulfilment continuing to drive demand for modern, strategically located facilities, Tritax’s expanded footprint positions it to capitalise on structural shifts in how Britain stores and delivers goods.
For Blackstone, meanwhile, the share-based element ensures continued exposure to a sector it helped transform — while freeing up capital for its next major bet on UK real estate.
