13th Oct 2025 10:50
(Alliance News) - Big Yellow Group PLC said it has held meetings with "a small number of parties" that could lead to a takeover offer, as Blackstone Europe LLP confirmed it is a potential bidder.
The two announcements on Monday, both in response to press reports, came as Tritax Big Box REIT PLC said it has agreed to buy a large UK logistics warehouse portfolio from Blackstone.
Big Yellow is a Bagshot, Surrey-based self-storage site operator. Tritax Big Box is a real estate investment trust focused on 'big box' logistics properties. Both are FTSE 250 constituents in London.
Blackstone Europe is part of New York-based private equity investment manager Blackstone Inc. Early Monday, it confirmed is "considering its position" in relation to Big Yellow. Any offer would be via one or more investment funds that it advises.
"Blackstone funds' evaluation of Big Yellow is at a preliminary stage and Blackstone is considering, amongst other factors, the macro-economic environment including the potential impact of the upcoming UK budget as it relates to the self-storage sector," the company said.
Big Yellow shares were up 18% to 1,138.00 pence in London following the announcement.
On Monday, Big Yellow emphasised it "is not in receipt of an approach and is not in discussions with any parties in respect of a potential sale of the company at the time of this announcement".
Separately, Tritax Big Box said it has agreed to buy a UK logistics portfolio from Blackstone Europe for GBP1.04 billion.
Tritax Big Box will pay GBP632 million in cash, funded via a new GBP650 million debt facility. It also will issue Blackstone with up 233.1 million new BBOX shares - an 8.6% stake in the expanded share capital - at 161p each, worth GBP375 million.
Tritax Big Box shares were up 2.6% to 145.60p early Monday in London, giving the share issue an 11% premium.
The purchase will give Tritax Big Box a gross asset value of GBP7.86 billion.
The portfolio consists of 6.5 million square feet of logistics space across 409 units. Tritax Big Box said the purchase will increase its urban footprint in the South East and Midlands of England.
The portfolio has GBP53 million per annum in aggregate passing rent and is 95% occupied. Tritax Big Box said the acquisition will be earnings per share enhancing by a mid-single-digit percentage in the first full year and "meaningfully accretive thereafter".
"Aligned with our strategic objectives, this exceptional portfolio offers strong rental reversion and numerous asset management opportunities," commented Chief Executive Officer Colin Godfrey. "It also significantly broadens our client proposition across key urban logistics markets and reinforces our leading position in mission critical big boxes."
Monday's deal that gives Blackstone a nearly 9% stake in Tritax Big Box follows closely upon a bidding war between the two companies over Warehouse REIT PLC. That battle was won by Blackstone, which completed its GBP489 million takeover of Warehouse REIT only last week. The property trust's shares were cancelled from trading in London on Thursday.
Blackrock shares closed down 3.0% to USD1,132.36 in New York on Friday.
Russ Mould, investment director at AJ Bell, said the deal was positive for both Tritax Big Box and Blackstone.
"Tritax further increases its exposure to the UK commercial property space and gets a shareholder with very deep pockets," he said.
"Blackstone gets its foot in the door with Tritax and would benefit as an investor from its success, as well as being close should the two companies seek to co-invest on projects in the future.
"Blackstone clearly has a strong appetite for UK property as it also confirmed takeover interest in self-storage group Big Yellow."
By Tom Waite, Alliance News editor
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Tritax Big BoxBig Yellow