Global Logistics Properties (GLP) has acquired the European logistics business Gazeley for €2.4bn from Brookfield Asset Management.

The deal will give GLP, which manages some US$39bn (€33.2bn) logistics assets in Asia-Pacific and the Americas, an immediate presence Europe.

Gazeley owns some 3m sqm of logistics facilities in the UK, Germany, France and the Netherlands. They are almost fully leased (98%) with a weighted-lease expiry of nine years and a development pipeline of 1.4m sqm of buildable area.

GLP has for some time been clear of its interest in entering Europe. More than 18 months ago, Seek Ngee Huat, GLP’s chairman, told IPE Real Estate during a magazine interview: “We’ll definitely not rule out the European market. There are some markets in Europe that we have been following. If we see some opportunities that make sense to us – and our investors – we will consider investing.”

Today, co-founder and CEO of GLP, Ming Mei, 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.”

GLP will integrate the Gazeley portfolio into its fund management platform but will retain the existing management team and the Gazeley brand.

It is already in negotiation with investors to co-invest in the European logistics platform.

GLP, which itself is in the throes of being taken private by the Nesta consortium, intends to fund the acquisition with close to €1.4bn in equity and €1bn in long-term debt.

Its entry into Europe is not expected to impact the timeline of GLP’s proposed privatisation, the company said today.