Blackstone Deepens European Push with $1.3bn UK Logistics Sale and Possible Bid for Big Yellow Self-Storage
Blackstone Group, the world’s largest alternative asset manager, has announced a new wave of deals in the United Kingdom as it expands its real estate footprint across Europe.
The firm said on Monday it would sell about £1 billion ($1.3 billion) worth of logistics assets to Tritax Big Box REIT in a cash-and-stock transaction that also gives Blackstone a 9% stake in Tritax. The U.S. private equity powerhouse also revealed it is considering a bid for UK self-storage operator Big Yellow Group, a move that sent the company’s shares soaring.
The announcements underscore Blackstone’s accelerating push into European property and logistics, even as rising borrowing costs and softer valuations continue to reshape the region’s real estate sector.
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Under the logistics deal, Tritax Big Box will acquire around 41 assets from Blackstone’s portfolio of British warehouses. The transaction — comprising £632 million in cash and the issuance of new Tritax shares — will make Blackstone one of Tritax’s largest shareholders, owning roughly 9% of the company after completion.
Shares in Tritax rose 3% in early London trading following the announcement, reflecting investor optimism that the deal would strengthen the logistics company’s position in one of Europe’s most sought-after real estate sectors.
The sale is part of Blackstone’s ongoing strategy to rebalance and scale its European logistics holdings, which have grown rapidly since the e-commerce boom accelerated during the pandemic. Demand for high-quality warehouses and last-mile delivery facilities has continued to climb as retailers and logistics operators expand their online fulfillment networks.
The U.S. investment firm, which manages more than $1 trillion in assets globally, has become one of Europe’s biggest logistics landlords through subsidiaries like Mileway, its pan-European logistics platform, and Warehouse REIT, a UK logistics specialist it acquired in July 2025 for nearly £500 million after outbidding Tritax in a competitive auction.
Blackstone’s latest sale to Tritax effectively turns its former rival into a partner. Some analysts see strong long-term fundamentals in UK logistics and believe this transaction will allow the company to retain strategic exposure through our new stake in Tritax.
Blackstone Eyes Big Yellow Takeover
In a separate development, Blackstone confirmed it is weighing a potential cash offer for Big Yellow Group, one of Britain’s largest self-storage operators. The London-listed company, which has a market capitalization of about £1.9 billion, saw its shares jump as much as 22% on Monday following Blackstone’s disclosure.
Big Yellow later acknowledged that it had met with several potential suitors in recent weeks to discuss strategic options, including a possible sale, but said no formal approach or offer had yet been received.
The interest in Big Yellow highlights Blackstone’s renewed appetite for UK property assets, particularly those in resilient, high-demand sectors like logistics and self-storage. Analysts believe that while traditional office and retail properties have struggled with rising interest rates, storage and industrial assets have performed relatively well due to strong occupancy rates and stable cash flows.
A potential acquisition of Big Yellow would add another dimension to Blackstone’s UK real estate empire. The firm already owns stakes in major infrastructure, logistics, and residential projects across the country — part of its pledge to invest £100 billion in Britain over the next decade.
A Broader European Bet
Blackstone’s twin announcements come as the UK real estate market undergoes one of its biggest reshuffles in years. The rise in borrowing costs since 2022 has reduced property valuations and triggered a wave of consolidation among listed real estate investment trusts (REITs) and private equity-backed landlords.
Among the latest moves, Assura, a healthcare property investor and major NHS landlord, recently agreed to be acquired by rival Primary Health Properties following a months-long bidding battle with KKR, another major U.S. private equity group.
Analysts note that Blackstone’s actions reflect a broader strategy of buying into cyclical weakness — capitalizing on reduced valuations while positioning for long-term growth once interest rates ease.
The renewed focus on the UK forms part of Blackstone’s broader €100 billion expansion plan across Europe, which includes logistics, housing, and data centers. Despite concerns about inflation and tighter monetary policy, the firm has been deploying capital aggressively into “new economy” assets that benefit from digitalization and demographic shifts.
Its Mileway subsidiary — the largest owner of last-mile logistics properties in Europe — operates more than 1,700 assets across 10 countries, while Blackstone’s European housing platform has grown rapidly in markets like Spain and Germany.
