GLP to syndicate €2.4bn Gazeley logistics portfolio [Corrected]
Global Logistic Properties (GLP) is planning to sell down its recently-acquired Gazeley portfolio of European logistics assets, for which it paid €2.4bn.
The Singapore-based company told analysts during its second-quarter earnings call that it was negotiating with investors about a syndication of the portfolio.
GLP, which entered the European logistics market through the acquisition of Gazeley in October, plans to retain a 15% stake through various capital sources.
Ming Mei, GLP’s co-founder and CEO, said: “We have been working with our capital partners – the pension and sovereign funds of the world – and they are very excited about this opportunity.
“We were also excited to be able to lead and partner with our investors to enter this market.”
Mei said there were “a few bidders” for Gazeley, adding: “We have been checking a few portfolios and have been working on this for the last six months.”
Mei said GLP, which is a major owner of Chinese logistics assets, said was “in the final stages” of launching long-awaited China funds.
There is strong investor demand to enter the Chinese market, he said. “We have identified partners to work with, and we expect to begin recycling assets in China [into funds]. Initially, it will be similar to what we have done in Japan.”
He added: “What goes through our mind is constant balancing of the capital needs and capital recycling. We are enjoying the potential rental income and [capital] appreciation that comes from strong rental growth in China.”
Asked about GLP’s ambitions to grow in Europe, Mei said “we expect Europe to follow a similar trajectory” to its US$39bn Asia-Pacific business.
“There is no reason why we won’t have assets under management in the US$20-30bn range in the US and Europe in the medium-to-long term. We expect the same, or even higher, in China and Japan.
“This is all going to be under our funds management platform.”
In time, he said, all three regions are expected to contribute one-third in fee revenue to GLP, which earned US$98m in management fees in the first half of the 2018 financial year.
GLP shareholders are due to meet on 30 November to approve privatisation of the listed company.
An earlier version of the story misstated GLP’s Asia-Pacific AUM.