LONDON, Sept 2 (Reuters) -

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.

($1 = 0.9035 euros)