July 11 (Reuters) - Britain's Warehouse REIT

recommended Blackstone's sweetened bid to its

shareholders on Friday, withdrawing support for industry peer

Tritax Big Box REIT's offer for the logistics

specialist.

Blackstone raised its offer for the London-listed company to

about 489 million pounds ($662.20 million) on Thursday,

outbidding Tritax's cash-and-stock offer of 485.2 million

pounds.

Logistics has remained attractive to property investors in

an otherwise lacklustre real estate market, due to robust demand

from eCommerce retailers seeking warehouse spaces to better

service their clients.

Real estate investment trusts - listed funds dedicated to

property - have also seen a wave of dealmaking as they try to

bulk up to improve profitability in tough trading conditions.

Tritax on Thursday said it continued to believe that its

buyout proposal was a "compelling proposition" for Warehouse

shareholders.

The company did not immediately respond to a Reuters request

for comment on Friday.

($1 = 0.7384 pounds)

(Reporting by Yamini Kalia in Bengaluru and Iain Withers in

London; Editing by Janane Venkatraman and Mrigank Dhaniwala)