Blackstone has launched Indurent, its new industrial business, following the merger of its specialist multilet industrial property company, Industrials REIT, and logistics developer and manager, St Modwen Logistics.
The integrated business, comprising a portfolio of more than 27 million square feet of industrial and logistics accommodation, is owned by investment funds managed by Blackstone and will be led by Chief Executive Julian Carey.
Carey has been given the top job at Indurent after leading Industrials REIT as chief executive for just under a year. He was promoted to the role from managing director of Industrials REIT in June 2023, having worked at the company since July 2017.
Indurent's management team also includes Tom Olsen, who is appointed chief financial officer, James Cooper, head of investment, and Lee Nash, who becomes head of development. Sarah Bellilchi is appointed general counsel, with the business operating from offices in both London and Stockport.
Indurent is described as one of the United Kingdom's "largest owners of logistics property" and has a presence across all the country's major cities, working with a pool of more than 2,000 businesses, ranging from local traders to global blue-chip businesses.
Its portfolio is made up of urban light industrial units and last-mile delivery facilities, as well as mid and big-box developments used for national distribution, production, or manufacturing.
Carey said in a statement that the deal creates Indurent, "a fully integrated industrial and logistics company that can support our customers at all stages of their lifecycle."
He added that "an undersupply of industrial and logistics space in key locations means we have an exciting opportunity to establish a truly national platform that will help businesses access the space they need. With Blackstone’s support, we are well placed to deploy capital where we see attractive acquisition opportunities and deliver on our ambitious development pipeline."
Since acquiring St Modwen and Industrials REIT in 2021 and 2023 respectively, Blackstone has invested well over £2 billion (US$2.53 billion) in the logistics businesses. Blackstone has said its new business will benefit from St Modwen Logistics's development capability and considerable land bank, which delivered circa 4 million square feet of warehouses over the past two years.
Blackstone announced its plans to merge the two businesses in February, after taking both businesses private. Blackstone took St Modwen private in June 2021 for £1.3 billion and agreed the £700 million take-private of Industrials, in March 2023.
James Seppala, head of European real estate, Blackstone, said that "as the market continues to evolve and mature, Indurent’s outstanding team and best in class approach to customer service across an expanded portfolio puts it in the best position for this next phase of growth."
Blackstone has repeatedly shared its strong confidence in the United Kingdom and the fundamentals of that logistics market, with the country being the number one destination for Blackstone Real Estate capital deployment last year, including over 40 transactions.