(Bloomberg) — Blackstone Group Inc. has increased its offer for U.K. warehouse and home developer St. Modwen Properties Plc to 560 pence a share, valuing the company at 1.27 billion pounds ($1.77 billion).

The final offer, which has been recommended to shareholders by St. Modwen’s board, so far has the backing of about 11% of the company’s investors, Blackstone said in a statement Thursday. The private-equity giant’s previous 542 pence a share offer was met with resistance from shareholder J O Hambro Capital Management Ltd.

A deal would hand Blackstone a large pipeline of development land for warehouses in the U.K., where competition for logistics properties is intense. Blackstone has been racing to scale up its Mileway unit that focuses on urban warehouse properties close to population centers that are in demand from online retailers seeking to cut delivery times.

The revised offer represents a 25% premium to St. Modwen’s share price on the day before the bid was announced in early May, and a 21% premium to the company’s net asset value. Shareholders Aviva Plc and Aberdeen Standard Investments said they would support the improved offer, in separate statements Thursday.

St. Modwen’s shares rose 0.5% in early trading in London on Thursday.

The landlord has been trading above Blackstone’s original offer price for the past month, as hedge funds piled into the company’s shares betting on a revised offer. Berry Street Capital Management, an event-driven hedge fund started by former Paulson Europe partner Orkun Kilic, raised its stake in the firm to 1.12% last week.

Lazard, JPMorgan Chase & Co. and Numis Corp. are advising St Modwen on the offer while Rothschild & Co. is advising Blackstone.

(Updates with investor support, shares from 4th paragraph)

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