The Blackstone Group L.P (NYSE:BX)’s Logicor speeding up warehouse deals

Boston, MA 04/16/2013 (wallstreetpr) – The largest private equity firm in the world The Blackstone Group L.P (NYSE:BX) (Closed: $20.49, Down by 3.44%) is owned by Logicor the European warehouse operator and owner. Mo Barzegar, the Chief Executive officer said that the company is planning on doubling its portfolio right through 2015 as it is now seeking to profit from the rise in values and rents. The company has bought $2 billion worth of distribution centers and warehouses in Poland, the United Kingdom as well as in France. This information had been announced by Barzegar, who is also the president of Logicor. Currently the company is the owner of 26 million square feet of logistics space.

Market opening up

He said that the highly fragmented real estate market that exists in Europe is a very attractive opportunity. The opportunity for creating a provider of modern logistics facilities panning all of Europe is an excellent one. This automatically means an access to capital and also that customers can be provided quality space. This is definitely a conducive alternative in the existing marketplace. There had been a decline in prices of income producing warehouses. At the end of 2012, they had been sold at 7.5 percent yields. Barzegar said that there will be a rise in values and rents of warehouses as businesses will move out of outdated buildings.

In addition to this, a larger number of warehouses for returns and deliveries will be rented by internet retail companies. On April 11, in a telephone interview he said that since they have an access to equity, they can acquire all-cash and then put a debt on it at a later date. He was confident that that the company will have a competitive edge and be able to move speedily and close deals quickly as well.

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Published by Fiona Gibson

Fiona is a finance graduate and an expert in analyzing market trends.

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