Burstone Group’s shareholders have approved the sale of an 80% stake in its Pan-European Logistics (PEL) platform to Blackstone, the world’s largest alternative asset manager, in a deal valued at €1.022 million.
Burstone will retain a 20% co-investment in the PEL platform while continuing to manage the portfolio which comprises 32 logistics assets across Europe.
Following transactions in Australia and Germany, which are anticipated to close by the end of 2024, along with the Blackstone deal, Burstone’s total third-party capital under management is set to increase almost fivefold from R4.7 billion to c.R23 billion.
The net proceeds from the Blackstone transaction will be used in line with Burstone’s objective to de-lever debt by R4.5 billion which will result in a decrease in its loan-to-value (LTV) ratio of approximately 12.5% to around 33.5%.
The deal will also allow Burstone to capitalise on potential future growth across its core regions, supporting further growth in the PEL platform over time, and increasing its dividend payout ratio from currently 75% to between 85% and 90% with effect from H1 2025.
