Alternative lender Blackstone Inc. says it will back a $23.8 billion recapitalization of Mileway, Europe’s largest urban warehouse operator and last-mile logistics company.
The private equity giant announced the move in a news release Tuesday (Feb. 15), showing the firm betting on logistics amid the rising global demand for same-day consumer good delivery.
“Logistics is one of our highest conviction themes globally, and the sector continues to prove its resiliency and strong growth potential,” said James Seppala, who oversees Blackstone’s real estate operations in Europe. “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.”
Over the past few years, Blackstone, which calls itself the world’s largest commercial real estate owner, has worked with Mileway to give it Europe’s most expansive last mile logistics portfolio, with 1,700 last-mile assets, amounting to 14.7 million square meters in 10 countries.
“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 U.K. and Europe,” said Emmanuel Van der Stichele, Mileway’s CEO.
With the recapitalization, Mileway investors will have the opportunity to either hold onto or increase their shareholding, or exit for cash. Most of capital for the recapitalization is from existing investors, showing their “strong conviction in Mileway and the sector,” Blackstone said.
Blackstone has previously backed JD Logistics, an off-shoot of the Chinese eCommerce giant JD.com, and GoPuff, the U.S.-based delivery startup.
News of the recapitalization came on the same day that next-day delivery startup Veho announced it had raised $170 million in an early-stage funding round led by Tiger Global.
Read more: Logistics Startup Veho Raises $170M Amid ‘Permanent Shift Toward Residential Delivery’
“The parcel delivery industry is straining under enormous demand and a permanent shift toward residential delivery,” said Griffin Schroeder, partner at Tiger Global. “Veho’s highly flexible and consumer-centric delivery network is an ideal solution.”