SINGAPORE - Global Logistic Properties (GLP) has made a move into Europe with a definitive agreement to acquire Gazeley, a developer, owner and operator of modern logistics facilities, for approximately 2.4 billion euros (S$3.85 billion).
Siad Ming Z Mei, GLP co-founder and chief executive officer: "We have been looking to expand to Europe and this portfolio presents an attractive entry point given the quality and location of the assets. This transaction adds a premier operational and development platform for us in Europe and is part of our long-term strategy to expand our fund management business."
GLP intends to inject the Gazeley portfolio into its fund management platform, in line with previous practice. It said company is already in negotiations with interested capital partners.
Earlier this year, Nesta Investment Holdings, a Chinese private equity consortium backed by senior executives from GLP, won a bid to acquire GLP for S$16 billion in Asia's largest private equity buyout.
GLP said on Monday (Oct 2) that the consortium backs GLP's entry into Europe and does not expect it to impact the timeline of the proposed privatisation of GLP.
The 3 million square metres (32 million square feet) Gazeley portfolio is concentrated in Europe's key logistics markets, namely the UK (57 per cent), Germany (25 per cent), France (14 per cent) and the Netherlands (4 per cent). It comprises 1.6 million sq m (17 million sq ft) of existing assets, which are 98 per cent leased with a weighted lease expiry of nine years, and a development pipeline of 1.4 million sq m (16 million sq ft) buildable area.
Approximately 60 per cent of existing assets have been built within the last five years and 85 per cent of the development pipeline is focused in the UK, one of Europe's most land-constrained markets, said GLP.
It intends to retain the existing management team and the Gazeley brand. The Gazeley management team averages 19 years of experience managing and developing logistics real estate, with five offices across Europe, GLP added.