LONDON - China Investment Corp is the front-runner in the race to acquire Blackstone Group LP's European logistics business Logicor for 12 billion euros ($13.4 billion).

Temasek Holdings and Mapletree Investments Ltd are also still in the bidding process, according to a person familiar with the situation. The news was first reported by Estates Gazette, a property magazine in the United Kingdom.

Blackstone, which created Logicor in 2012, is cashing out as demand for European logistics properties from investors and tenants grows.

Logistics properties have become increasingly attractive to sovereign wealth and pension funds after the growth of internet shopping boosted demand from occupiers.

CIC owns a stake in New York-based Blackstone after investing in the company in 2007 and 2008. A CIC entity owned about 4.6 percent of the asset manager as of February, according to Blackstone's annual report.

A spokeswoman for Blackstone did not immediately reply to telephone calls and an email requesting comment.

An email to CIC's Beijing-based press office outside normal working hours did not receive an immediate reply. Representatives for Temasek and Mapletree declined to comment.

Prime European warehouses are forecast to generate average returns of 7.6 percent annually during the next five years, compared with 6.4 percent for malls and 5.2 percent for offices, according to a March report by Deutsche Bank AG.

Logicor, based in London, owns about 13.7 million square meters of logistical space across Europe, rented to companies including Amazon.com Inc and DHL Worldwide Express.

Bloomberg