GLP establishes two new European funds post Gazeley acquisition

Photo: GLP website

Singapore-listed Global Logistic Properties (GLP), which is Asia’s biggest warehouse operator, Thursday said it had established two new European funds, as part of its recent foray into that continent.

In October,  the warehouse operator, which is currently in the process of being bought out by a Chinese private equity consortium backed by senior executives from GLP, had announced its foray into Europe. GLP said that it had reached a deal to acquire European logistics platform Gazeley for about $2.8 billion.

Post this deal, which has now been completed, GLP said that it had established two new funds.

The first fund – GLP Europe Income Partners I – comprises a US$2.0 billion portfolio of Gazeley’s operating assets across the key European markets of the UK, Germany, France and the Netherlands, the company said.

The second vehicle – GLP Europe Development Partners – is a development venture expected to reach US$2.0 billion when fully leveraged and invested. GLP EDP I is seeded with land to support 16 million sq ft – 1.4 million sqm – of build able area, it added.

The warehouse operator added the two new funds increased the size of its fund management platform by US$4.0 billion to US$43 billion.

Thursday’s announcement also included a management transition at Gazeley, with Nick Cook, its current COO taking over as the president & CEO, while Pat McGillycuddy, the current CEO and one of the founding members of Gazeley, is set to become non-executive chairman of the firm.

At the time of its European foray, GLP said it intended to inject the Gazeley portfolio into its fund management platform, in line with previous practice. It had also said that Investor demand to partner with it in the European logistics market was strong , and added that the  company was already in negotiations with interested capital partners. Further, it had added that the existing management team and Gazeley brand would be be retained.

“Demand from institutional investors to partner with GLP in Europe outstrips the amount available for investment. GLP sees demand from leading global capital investors including sovereign wealth funds, pension plans and financial institutions. As of completion, co-investors have funded approximately 24% of capital contributions alongside GLP, and GLP expects to complete the ~85%syndication by April 2018,” its statement today added. 

Last month, this portal had reported that Global Logistic Properties had received a nod from its shareholders for its privatisation by Nesta Investment Holdings, the vehicle owned by Hopu, Hillhouse Capital, SMG, Bank of China Group Investment and Vanke. Singapore state fund GIC, as the single largest shareholder of GLP with a 36.84 per cent stake, had voted in favour of the scheme, company had announced. The final day of trading of GLP shares on the SGX is likely to be January 4 next year.

Nick Cook said: “I am delighted to take over the leadership of Gazeley at this incredibly exciting time in our evolution. Our way of working is deeply rooted in a customer-centric culture, continuous innovation and developing best-in-class distribution warehouses. We see a seamless fit with GLP and are excited about the company’s future prospects under this new long-term ownership structure.”

 

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. 
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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.