GLP sets up two new European funds post Gazeley acquisition

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Having now completed acquisition of Gazeley, Global Logistic Properties (GLP) has established two new European funds which will collectively hold €3.4bn in assets.

GLP recently acquired Gazeley portfolio of European logistics assets for €2.4bn.

Gazeley owns some 3m sqm of logistics facilities mostly in the UK and three key markets in Europe.

Following the transaction, GLP has launched GLP Europe Income Partners I, to be seeded with a €1.7bn portfolio of Gazeley’s operating assets in the UK, Germany, France and the Netherlands.

The second entity, GLP Europe Development Partners, is a development venture expected to reach €1.7bn when fully-leveraged and invested.

The second fund will have access to Gazeley’s land-bank for construction of some 16m sqft (1.4m sqm) of buildable area.

The Singapore-based company said in a statement that 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.”

Acquisition of Gazeley has boosted GLP’s total assets under management to US$43bn from US$39bn (€36bn from €33bn).

Post-acquisition, Nick Cook will succeed Pat McGillycuddy, one of the founders of the British company, as president and CEO, while McGuillycuddy, who has run the business for nearly 15 years, becomes non-executive chairman.

GLP said the Gazeley transaction is “highly complementary” to GLP, providing one of the highest-quality portfolios in Europe and an experienced local management team with a strong development track record.

GLP intends to retain the existing management team and the Gazeley brand.

Steve Schutte, GLP’s chief operating officer, reiterated that Europe is a market the group has been exploring “for a while”. “This acquisition is the right fit for our business model at the right time,” he said.

As of completion, co-investors have funded approximately 24% of capital contributions alongside GLP, and GLP expects to complete around 85% syndication by April 2018.