Asia's largest logistics firm enters European market
7 October, 2017
Asia’s biggest warehouse operator Global Logistic Properties (GLP) marks its first push into Europe by agreeing to acquire European logistics platform Gazeley for about $2.8bn, news wires reported. GLP said the properties, owned by funds affiliated with Brookfield Asset Management Inc, were spread across four countries and comprised 3m sq m of total gross leasable area. The acquisition portfolio was concentrated in Europe’s key logistics markets, with 57% in the UK, 25% in Germany, 14% in France and the remainder in the Netherlands, 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,” Ming Mei, co-founder and CEO of GLP said, adding that the purchase was part of the company’s long-term strategy to expand its fund management business. Singapore-listed GLP has a $42bn portfolio of assets across China, Japan, Brazil and the US. It is benefiting from rising demand for logistics facilities driven by a boom in e-commerce from clients such as Amazon.com and JD.com.
In June, private equity group Blackstone agreed to sell European warehouse firm Logicor to China Investment Corp (CIC) for €12.25bn in the biggest private equity real estate deal in Europe on record.
GLP is in the process of being taken over for $11.8bn by a leading Chinese private equity consortium backed by senior executives from GLP, marking Asia’s largest private equity buyout. Property developer China Vanke is part of the group.