Burstone CEO Andrew Wooler says the group’s recent joint venture (JV) with Hines, acting on behalf of Hines European Real Estate Partners (Herep) 3, is a deliberate move to shift from a traditional property owner to a global real estate player with stronger funds and asset management capabilities.
The partnership focuses on a pan-European portfolio of light industrial assets. Burstone is contributing 20% of the equity and will take responsibility for investment and asset management, leveraging Hines’ established European industrial platform, which had a gross asset value of more than €5bn (about R96bn) as of December 2025.
So far, the JV has deployed more than R760m to acquire six off-market assets in Germany and the Netherlands, covering roughly 49,000m2 and 90% occupied by logistics and wholesale tenants. A phased capex programme is planned to reposition these properties and boost rental growth, laying the groundwork for the JV’s next phase of expansion.
“Germany and the Netherlands have mature industrial and logistics markets, well connected by road, air and rail, with major distribution hubs. Their logistics and light industrial sectors are deep, efficient and highly liquid,” Wooler said.
With these initial acquisitions secured, the JV will focus on Germany and the Netherlands, strategically targeting prime commercial locations near major urban centres, building on its strong track record of operating profitably in these markets, he said.
Wooler said since peaking in mid-2022, the light industrial market has materially repriced and remains fragmented at many core Continental European locations. Much of the stock is underloved and undermanaged, presenting a compelling opportunity to unlock value through our asset management approach.
“We focus on identifying underpriced or underperforming assets where value can be added through targeted management initiatives — whether addressing vacancy, low rents or outdated tenant mixes. Strong tenant relationships are key, and we aim to deliver positive ESG [environmental, social, governance] outcomes alongside value creation on all capital deployed,” he said.
The joint venture has already identified several near-term investment opportunities to drive further portfolio growth and capital deployment.
“The JV has a pipeline of significant value in pan-European light industrial assets. With our first tranche of assets being notarised this week, we are continuing to build our pipeline to facilitate the level of portfolio deployment,” Wooler said.
Herep is a series of closed-ended, discretionary funds focused on high-conviction, thematic investments in prime European markets. Herep 3, completed its final closing in November 2023 with more than €1.6bn in equity.
Burstone sold an 80% stake in its Pan‑European Logistics (PEL) platform and formed a strategic partnership with Blackstone in 2024, while retaining a 20% co‑investment and continuing to manage the portfolio.
The platform spans logistics properties across key Western European markets, including Germany, France and the Netherlands, strengthening Burstone’s footprint in Europe’s prime logistics sector.
Note: Tuesday March 17
The headline and subhead of this story have been changed to indicate Burstone is expanding its international operations.
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