A GLP European logistics real estate investment platform has received an additional €1.7bn from its partners Canada Pension Plan Investment Board (CPP Investments) and QuadReal Property.
GLP said CPP Investments and British Columbia Investment Management Corporation’s real estate arm QuadReal Property have invested €900m and €800 of equity respectively to expand the investment capacity of GLP Continental Europe Development Partners I (GLP CDP I), the European logistics platform the trio created in 2018 to develop logistics assets in continental Europe.
CPP Investments and QuadReal’s investment represent a 45% and 40% share respectively in the venture, with the remaining 15% held by GLP.
GLP said the additional investment will be used to “transform GLP CDP I into a Pan-European development vehicle by strategically expanding in UK and CEE markets via the acquisition of landbank and select high-quality logistics development opportunities”.
The new capital expands the investment capacity of GLP CDP I, giving the venture €4bn of assets under management once fully invested.
Ralf Wessel, managing director, fund management, GLP, said: “This upsize is testament to how well GLP CDP I has performed since its inception. Our investment pipeline is considerably ahead of schedule and we are seeing strong demand for our developments, reflecting attractive fundamentals for logistics development across all major hubs in Europe.
“We look forward to continuing our partnership with CPP Investments and QuadReal to expand GLP CDP I into a truly pan-European development vehicle.”
Andrea Orlandi, a managing director and head of real estate investments in Europe at CPP Investments, said: “GLP CDP I is a key part of our development-led growth strategy in the logistics sector globally. Given the success of the venture to date, we are pleased to be continuing and expanding our partnership with GLP and QuadReal.
”We have a strong conviction in the logistics and warehousing sector and the ability of GLP to execute on our strategy, enabling us to deliver long-term sustainable returns for our contributors and beneficiaries in Canada.”
Jay Kwan, a managing director and head of Europe, at QuadReal, said: “Expanding our venture with GLP and CPP Investments was a natural evolution of our partnership given its success to date, continued favourable market conditions and strong relationships created with tenants. We’re pleased to be investing alongside two partners with whom we have a lockstep relationship.”
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