Thacher advises on European warehouse business

Thacher advises on European warehouse business

The treaty is being dubbed as the largest private real estate transaction ever, as it takes advantage of the demand for same-day delivery of goods

As part of what would be the biggest private real estate transaction ever, Simpson Thacher & Bartlett is advising Blackstone on the $24 billion recapitalization of Mileway, the biggest operators of urban warehouses in Europe.

Despite the growing demand for same-day deliveries from consumers caused by the Covid-19 pandemic, the big deal underlines the private equity firm's confidence in its last-line delivery.

An investor in Mileway has been offered a choice between keeping or increasing their shareholding or getting out for cash as part of the recapitalization, according to the company. According to Blackstone, the recapitalization has been substantially financed by existing investors, which demonstrates the investment firm's 'strong convictions' in Milway and its last-mile delivery business.

Mileway said it would initiate a 'go-shop process' led by Morgan Stanley during which it will engage with its current investors to ensure the best terms are reaching Mileways investors. The process could take up to 75 days.

Deal team members include Wheatly MacNamara, Peter Vassilev, Rony Rothken and Nancy Mehlman in New York, as well as London partners Étienne Renaudeau, Edward Hampson, Tom Lloyd and Peter Vassilev.

Along with Sarah Lane, Ryan Harvey, Kimberley Chikitch, Luke Murphey, Chun Baak, Beatriz Gil, Sneha Padden, Seema Walji, Joe Donaghey and other associates are also working on the deal in London. Attorney Jodi Schneider is working on the transaction in New York whereas associates Sean Stratmoen, Joshua Gottesman and Carter Kagedan are advising from Washington, DC.

Blackstone has worked with Simpson Thacher in the US for a long time and it has just begun winning work for the major private equity firm in Europe. Geoffrey Bailhache, the company's European general counsel, was hired as a partner last year to further expand its private equity activities in Europe.

Despite a number of lateral partner appointments by the firm in London, including four in 2020, the London partners who made up the team working on this deal were all promoted internally: finance specialist Lloyd joined the firm in 2017, while Hampson, another finance lawyer, specialized in real estate investments and antitrust lawyer Renaudeau were both promoted in the firm's partner round for 2021.

With a team of six lawyers, the firm opened its doors for business in Brussels in September 2021, helping clients with European merger control issues, competition law issues, and regulatory issues post-Brexit.

The Amsterdam-based Mileway firm began operations in 2019 and operates across ten countries with more than 1,500 logistics assets covering 14.7 million square meters. Private equity giant purchased the assets for the purpose of developing its last-mile delivery business.

James Seppala, head of Blackstone's European real estate division, said that the logistics sector was one of the company's highest convictions. "The sector continues to show resiliency and growth potential," he added.

Emmanuel Van der Stichele, Mileway's CEO, said: "Blackstone's ongoing support will allow us to continue to pursue Mileway's vision and share its values while implementing our value-enhancing initiatives and developing the company's expansion plans in key urban markets across the UK and Europe."

Microsoft's acquisition of Activision Blizzard for $68.7bn last month revealed Simpson Thatcher as one of the companies involved. Among the firms they represent are Weil Gotshal & Manges and Skadden while Activision Blizzard is represented by Skadden.