Oct 13 (Reuters) - Tritax Big Box said on

Monday it has agreed to acquire Blackstone's UK logistics

assets for 1.04 billion pounds ($1.39 billion), with the U.S.

private equity firm taking a 9% stake in the London-listed real

estate investment trust.

The two companies were recently locked in a bidding war over

Warehouse REIT, another UK-based real estate investment

trust.

Over the past two years, the UK's real estate investment

trust (REIT) sector has seen significant consolidation.

Warehouse landlords and investment firms are capitalizing on the

rising demand for rapid delivery by increasing occupancy and

securing higher rents for logistics spaces in UK cities.

The acquistion will help Tritax expand its urban and

small-box logistics offerings in the UK's South East and the

Midlands.

Under the deal, Blackstone will acquire an about 9% stake in

Tritax, becoming its second-largest shareholder, according to

data compiled by LSEG, just behind Phoenix Life Limited.