Blackstone Inc. is set to consolidate its warehouse property interests in the UK, merging St Modwen and Industrials REIT with other assets from 25 acquisitions to launch Indurent, a new entity poised to become a leading force in the UK’s industrial real estate market. This strategic move aims to streamline operations and enhance the company’s market position, potentially setting the stage for future sale options or an initial public offering.

With more than 200 properties covering around 26 million square feet, Indurent is set to trail only behind giants like Segro Plc and Tritax Big Box REIT in the realm of UK logistics properties. This consolidation reflects Blackstone’s commitment to capitalising on the robust growth and resilient fundamentals of the UK logistics sector, underscored by a £2.1 billion investment in the development pipelines of St Modwen and Industrials REIT.

This initiative is part of Blackstone’s broader strategy to create integrated platforms for its UK warehouse investments, a move that aligns with the firm’s successful history in the sector, including the establishment and sale of Logicor to China’s sovereign wealth fund and the recapitalization of Mileway. By forming Indurent, Blackstone aims to leverage the exceptional performance and long-term growth potential of UK logistics, offering a streamlined and effective management structure for future expansions and value creation.

The formation of Indurent comes at a time when the UK’s publicly traded real estate firms face market challenges, prompting a trend towards privatization and consolidation within the industry. This strategic manoeuvre by Blackstone not only signifies a significant investment in the UK’s logistics infrastructure but also highlights the firm’s confidence in the sector’s ongoing growth and its potential for delivering substantial returns to investors.