£11bn deal puts London back in the big league

Confidence boost for City as warehousing giant to go public

THE City is gearing up for its largest stock market float in five years with the £11bn listing of warehouse giant Logicor.

The commercial landlord, which owns 600 premises across Europe, was set up by private equity giant Blackstone in 2012 and counts Amazon among its major customers.

It is reportedly considering an initial public offering in the first six months of the year, in a major boost for Britain.

‘It’s a feather in the cap for London because, let’s face it, this could have listed anywhere,’ said Laith Khalaf, an analyst at Hargreaves Lansdown. ‘The London Stock Exchange is one of the world’s leading exchanges but it’s pleasing to see companies are still willing to list here – particularly with the uncertainty around Brexit.’

If it goes ahead, the floatation of Logicor – the largest owner of distribution properties in Europe – will be Britain’s biggest since mining giant Glencore joined the stock exchange with a £36bn valuation in 2011. A private sale is thought to be another option on the table.

The plans, which have not been officially confirmed, could trigger a bumper payday for bankers at Goldman Sachs. It is said to be advising Blackstone on the deal and is likely to earn hundreds of millions of pounds in fees if it goes ahead. Real estate firm Eastdil Secured is also thought to be involved in the listing.

The Logicor deal will vie for the title of this year’s biggest float with mobile phone business O2, which is preparing to list with a valuation of around £10bn.

O2 is hoping to sell shares to millions of ordinary investors in the first major retail offering since the Royal Mail flotation three years ago.

BGL Group, owner of the price comparison website Compare The Market, is also set to go public, with a price tag of £2bn.

It suggests 2017 could be better for listings than last year, when several were ditched due to market volatility. Tech company Misys and budget fitness chain Pure Gym were among the firms that backed off as stocks swung wildly in the wake of Donald Trump’s US presidential victory and the Brexit vote.

Analysts said Logicor was likely to be a compelling offer for investors due to the rise of internet sales. With the dominance of Amazon and others, such as clothing firm Asos, more and more retail goods are shipped directly to customers from giant warehouses.

Blackstone declined to comment.