Global Logistic Properties expands into Europe with $2.8b acquisition of Gazeley

Photo: GLP website

Global Logistics Properties (GLP), a global provider of modern logistics facilities, is set to acquire Gazeley, a developer, owner and operator of modern logistics facilities in Europe for $2.8 billion (€2.4 billion).

The transaction is expected to be funded by approximately $1.6 billion (€1.4 billion) of equity and $1.2 billion (€1.0 billion) of long-term, low-cost debt. GLP will fund its equity commitment with cash on hand, existing credit facilities and new indebtedness. No additional equity will be issued to fund this acquisition.

The entry into the European market is not expected to impact the timeline of the proposed privatization of GLP.

According to details in a media release, 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.

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. The existing management team and Gazeley brand will be retained. It currently maintains five offices across Europe.

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.”

The 32 million square feet acquisition portfolio is concentrated in Europe’s key logistics markets – the UK (57 per cent), Germany (25 per cent), France (14 per cent) and the Netherlands (4 per cent) – and comprises 17 million square feet of existing assets, which are 98 per cent leased with a weighted lease expiry of nine years, and a development pipeline of 16 million square feet buildable area.

Approximately 60 per cent of existing assets have been built within the last five years, while 85 per cent of the development pipeline is focused in the UK, which is one of Europe’s most land-constrained markets.

The acquisition also comes at a time of strong macroeconomic performance in Europe, which is seeing e-commerce drive growing demand for logistics space, as well as falling unemployment and record low vacancies.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.