Following its Miller deal, Blackstone swoops again

Blackstone, the giant US private equity firm that earlier this week took a majority stake in Edinburgh-based construction outfit Miller Group, hit the acquisition trail again yesterday.

The investment firm snapped up a group of warehouses in the Midlands from London-listed property firm London & Stamford for £265 million.

Keith Crawford, an analyst at Peel Hunt, reiterated his “buy” recommendation on London & Stamford following the deal. Crawford said: “A large return on equity of more than 32 per cent since acquisition is realised and London’s firepower is significantly bolstered to more than £900m to invest elsewhere within the property market for maximum returns.”

The Miller family sold a controlling stake in their housebuilding firm to Blackstone as part of a refinancing deal that will help the company to take over other players in the construction industry.