Private equity giant Blackstone has agreed to buy an 80% stake in a European warehouse portfolio run by landlord Burstone, the latest push by the U.S. investment manager into warehouses that have boomed alongside the rise of e-commerce.

The Johannesburg-listed company - formerly Investec's property fund - has agreed to sell the controlling stake in the 1.1 billion euros ($1.2 billion) portfolio with properties in seven countries including Germany, France and the Netherlands to Blackstone, according to a Burstone stock exchange announcement.

Burstone will receive immediate cash proceeds of 250 million euros from the sale, the statement said, adding that the deal would help it fund expansion of the business. Burstone will retain a 20% interest in the portfolio and its European team will continue to manage it.

Blackstone has made a series of investments in European warehouse businesses in recent years including under the brand Mileway, a last-mile logistics company which Blackstone and existing investors recapitalised in 2022.

Logistics including warehouses have been a bright spot in a struggling commercial real estate market, as the boom in e-commerce creates demand for more space.