GLP, the global provider of modern logistics facilities, has agreed a deal to buy Gazeley, a developer, owner and operator of modern logistics facilities in Europe for approximately $2.8bn.
GLP said the acquisition provides it with one of the highest quality portfolios in Europe as well as an experienced local management team with a strong development track record.
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, the company said in a statement and it has already entered into negotiations with interested capital partners.
The organisation has also said that it intends to retain 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 32mn square 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 17mn sqft of existing assets, which are 98% leased with a weighted lease expiry of nine years, and a development pipeline of 16mn sqft 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.