Singapore-listed Global Logistic Properties (GLP), the largest warehouse owner in Asia, has acquired European logistics business Gazeley in a €2.4bn (US$3.8 billion) deal.
GLP bought the company from Toronto-based fund manager Brookfield Asset Management, the world’s second-largest real estate fund manager. Brookfield acquired Gazeley from Dubai World in 2013 as
part of a planned expansion in Europe for an undisclosed sum.
GLP, which has Singapore sovereign wealth fund GIC as its single largest shareholder, was bought earlier this year by a consortium of investors including Hopu, Hillhouse Capital Management and real estate developer Vanke. GLP said in a statement that it did not expect the acquisition of Gazeley to affect the timeline of its privatisation.
E-commerce triggers interest in logistics assets
Gazeley's portfolio is concentrated in Europe's key logistics markets - 57% in the UK, 25% in Germany, 14% in France and 4% in the Netherlands. It comprises 17 million sq ft of Gazeley's existing assets, which are 98% leased.
Industry observers point out that the deal signals increasing interest in logistics businesses and property companies as investors bet on the rise of e-commerce, particularly in Asia.
Ming 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.”
He went on to say: “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."
Nol van Fenema