Blackstone relaunches on Italia for hotels, logistics and data centres

'In recent years we have continued to be very significant investors in logistics, as it benefits from the structural growth of ecommerce, but at the same time we are significantly increasing our exposure to data centres, which are in fact the physical foundation of the artificial intelligence revolution,' says Seppala, emphasising how the group is building a long-term positioning on these assets.

More than EUR 5 billion in Italia

Italia is confirmed as one of Blackstone's main markets in Europe, along with the UK, Germany, France and Spain, with a portfolio exceeding EUR 5 billion distributed among logistics, offices, hotels, residential, retail and data centres.

"We would like to do more in Italia, because it has been a very strong market for us and has shown very solid performance, so we continue to look for new opportunities," Seppala emphasises, clearly indicating a desire for expansion.

The investment directions are well defined: 'We will continue to invest in logistics, we are devoting a lot of time to data centres and digital infrastructure in Italia as well, and we want to grow further in hospitality and, where possible, also in residential.

In the hotel sector, Blackstone strengthened its presence through a strategic partnership with Mangia's, investing in six beachfront hotels and allocating more than EUR 100 million in capex for the repositioning and rebranding of assets, including Mangia's Brucoli Sicily, Autograph Collection by Marriott, and Mangia's Santa Teresa Sardinia, Curio Collection by Hilton.

"This investment is perfectly aligned with the macro trend of global travel growth, and Italia, which is Europe's third largest country in terms of international arrivals, is experiencing increasing interest especially in destinations on the islands where our assets are located," Seppala notes. The US giant also participated in the tender for the sale of the Unipol hotels, reaching the final stages of the competition, which was not concluded because the insurance group considered the proposed figures inadequate.

Economy and interest rates

After the phase of strong turbulence linked to rising interest rates, the European real estate market seems to have reached a new equilibrium.

"Real estate has been severely impacted by the rising cost of capital, just think that in Germany we went from rates around one per cent up to seven per cent and then back to around three per cent today, and this has had a very significant effect on valuations," Seppala explains, adding, however, that "today we can say that stability is returning and this allows investors to trade with more confidence.

And Milan? In this context, Italia continues to stand out for particularly strong fundamentals, with very low vacancy levels and limited supply, also due to rising construction costs, which have risen by 30-40% in the last five years. 'If you own an existing asset, be it a hotel in Milan or a residential property, demand is strong and supply is limited, so it is difficult to imagine a significant negative impact on fundamentals,' Seppala emphasises. 'Milan is a city well positioned for the future, able to attract people and capital from all over the world, thanks to its quality of life, culture and economic opportunities.

The decision to exit the outlet segment is part of a strategy to reallocate capital towards logistics, digital infrastructure and hospitality, asset classes that are more aligned to the changes taking place, in an environment where, as Seppala concludes, 'everything is changing faster than ever before, and this creates the most attractive opportunities for long-term investors'.