Global Logistic Properties (GLP) has entered into an agreement to acquire Gazeley for approximately €2.4 billion (S$3.84 billion).
Gazeley develops and operates logistics facilities in Europe.
GLP co-founder and chief executive Ming Z. Mei said: "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 plans to inject the Gazeley portfolio into its fund management platform, in line with previous practice. It said it is 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 $16 billion in Asia's largest private equity buyout.
GLP said yesterday that the new acquisition is not expected to impact the timeline of the proposed privatisation of GLP.
The 32 million sq ft Gazeley portfolio is concentrated in Europe's key logistics markets - Britain (57 per cent), Germany (25 per cent), France (14 per cent) and the Netherlands (4 per cent).
It comprises 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 16 million sq ft buildable area.
About 60 per cent of the existing assets have been built within the last five years and 85 per cent of the development pipeline is focused in Britain, 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.