GLP buys Gazeley for US$2.8bn
Global provider of logistics facilities GLP has entered into a definitive agreement to acquire Gazeley, a developer, owner and operator of logistics facilities in Europe for approximately US$2.8 billion.
This transaction provides GLP with one of the highest quality portfolios in Europe as well as an experienced local management team with a strong development track record.
Mr. Ming Z. Mei, Co-Founder and Chief Executive Officer of GLP, 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 intends to inject the Gazeley portfolio into its fund management platform, in line with previous practice. Investor demand to partner with GLP in the European logistics market is strong and the Company is already in negotiations with interested capital partners.
Leading Europe Logistics Platform
GLP 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.
The 3 million2 square meter (“sqm”) (32 million square feet (“sq ft”)) acquisition portfolio is concentrated in Europe’s key logistics markets, namely the UK (57%), Germany (25%), France (14%) and the Netherlands (4%). It comprises 1.6 million square meters (17 million square feet) of existing assets, which are 98% leased with a weighted lease expiry of 9 years, and a development pipeline of 1.4 million square meters (16 million square feet) buildable area.
Approximately 60% of existing assets have been built within the last five years and 85% of the development pipeline is focused in the UK, one of Europe’s most land-constrained markets.
