The PERE Podcast 'It's an alpha trade': Private equity comes for logistics REITs
12 snips
Aug 29, 2025 Private equity firms are making bold moves in the logistics REIT sector, with Blackstone taking a lead in acquiring Warehouse REIT. The competitive landscape features bids from Sixth Street and Brookfield, highlighting a surge in private equity interest in underperforming assets. The discussion delves into the intricacies of unsolicited bids, such as Sixth Street's approach to Plymouth REIT. Insights on market trends and strategic shifts are shared, making it clear that the logistics space is becoming increasingly appealing for investment.
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Blackstone And Sixth Street's Bidding Dance
- Blackstone and Sixth Street pursued Warehouse REIT with multiple bids and counteroffers earlier in the year.
- Tritax later entered and dropped out, leaving Blackstone's cash bid standing.
Private Capital Targets Weak Logistics REITs
- Logistics REITs have lagged recently, making them takeover targets for private managers with cheaper capital.
- Private firms use higher leverage and opportunistic timing to outcompete listed peers for these assets.
UK Logistics Dramatically Underperformed
- UK logistics REITs returned about -19.7% over the last year while UK REITs averaged +14.31%.
- This sharp underperformance explains why private buyers see buying opportunities now.