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.”