Editor’s comment: Industrial strengths

Another week, another pan-European logistics platform. This week Blackstone – yes, them again – acquired a portfolio of 26 light industrial assets in France from M7’s MStar joint venture with Starwood Capital. The deal is interesting in and of itself: it highlights that it is not just the UK whose retail world is dominated by the likes of Amazon and fuelled by consumers’ near-insatiable appetite for instant gratification. But its significance is broader. The tie-up suggests Blackstone could buy out more of the vehicles that M7 manages and provide capital for expansion to establish a much larger business. Expect Blackstone to fund any acquisitions, which M7 may help source and then asset manage. The deal also highlights that investor interest in the industrial sector shows no sign of waning as other sectors suffer. Jefferies downgraded six REITs this week, reinforcing its “underperform” rating for the UK REIT industry for 2017. And, as at lunchtime on Thursday, REITs and housebuilders accounted for almost half of the 15 biggest fallers on the FTSE 100. It highlights too that Blackstone’s own interest will be sustained long after it completes an expected €13bn (£11.3bn) sale or float of its Logicor business. Alongside the M7 arrangement, Blackstone is also considering making an offer of $8.6bn (£7bn) for Global Logistics Properties, the Singapore-listed logistics company that is the largest in Asia. This is all underpinned by social change and consumers’ heightened expectations. On Christmas Eve, Amazon delivered an order just 13 minutes after it was placed. That is why mastering the last mile is logistics’ main challenge. Doing so requires scale and proximity. Supply chain and logistics consultant MWPVL estimates that Amazon alone has 147 fulfilment centres and delivery hubs outside the US – and 214 in the US – with a further 30 planned globally. That number will only grow. And that is why industrial and logistics will retain its pre-eminence for the foreseeable future. ■ A couple of revealing interviews this week. When Sir Howard Bernstein announced his retirement as Manchester City Council chief executive last autumn, the hunt for a suitable replacement was a daunting one: Bernstein’s tenure has shown how, together, an open-minded local authority working with enlightened private sector partners can be greater than the sum of their parts. Might the city lose momentum when he stands down after MIPIM? Read our interview with his successor and you should come away feeling reassured that it won’t. Joanne Roney has shown she can get things done during her time at Wakefield Council, not least in creating a housing company and rescuing the Trinity Walk shopping centre. She is understandably reserved about detailed plans for the city, but strong on principles – from devolution to the housing white paper to football. (Man City or Man United? we ask. “I’m a Birmingham City fan,” she says flatly.) Roney will be at MIPIM. She’ll be busy. There is similar frankness from Andrew Hook, manager of the Aviva Investors Property Trust, which closed for redemptions last July and reopened last month. It was one of seven open-ended retail funds to close after investors scrambled for redemptions in the wake of the § vote. Hook explains why the fund closed, took so long to reopen, and how he hopes to become a buyer again. More than anything, the interview highlights the need for reform of the sector: daily liquidity and illiquid assets make for an uncomfortable marriage. John Forbes’ independent review of the funds is expected by Easter. Let’s hope change is swift. • To send feedback, e-mail damian.wild@estatesgazette.com or tweet @DamianWild or @estatesgazette