Prologis makes €21 billion European warehouse bid
Prologis (NYSE: PLD) made a €21 billion, nonbinding offer to acquire Mileway, a group of European warehouses owned by The Blackstone Group, per the FT.
Why it matters: This would be the largest private equity real estate deal of all-time, and reflects how e-commerce growth has increased logistics property values.
Background: Blackstone last month said it would recap Mileway at a €21 billion valuation, but that deal included a 75-day "go-shop" period. It remains unclear if Blackstone, which began building its Mileway portfolio six years ago, would come back over the top.
The bottom line: "Warehouses have been a winning bet over the past two years, in which the proportion of sales made online has surged across the continent while coronavirus forced shoppers to stay at home. The disruption to supply chains caused by the pandemic, the blockage of the Suez Canal by the container ship Ever Given and more recently Russia's invasion of Ukraine have also led companies to stockpile more materials. Prologis shares are more than 60% up on their pre-pandemic level, giving the company a market capitalization of close to $120 billion." — George Hammond, FT