GLP, the leading global provider of modern logistics facilities, has entered into a definitive agreement to acquire Gazeley, a premier developer, owner and operator of modern logistics facilities in Europe for approximately €2.4bn (US$2.8bn). This transaction provides GLP with one of the highest quality portfolios in Europe as well as an experienced local management team with a strong development track record.
The 3 million m² (32 million ft² ) acquisition portfolio is concentrated in Europe’s key logistics markets, namely the UK (57%), Germany (25%), France (14%) and the Netherlands (4%). It comprises 1.6 million m² (17 million ft²) of existing assets, which are 98% leased with a weighted lease expiry of 9 years, and a development pipeline of 1.4 million m² (16 million ft²) buildable area.
Approximately 60% of existing assets have been built within the last five years and 85% of the development pipeline is focused in the UK, one of Europe’s most land-constrained markets.
This transaction is expected to be funded by c. €1.4bn (US$1.6bn) of equity and €1bn (US$1.2bn) of long-term, low-cost debt. GLP will fund its equity commitment with cash on hand, existing credit facilities and new indebtedness.
Mr. Ming Z. Mei, Co-Founder and Chief Executive Officer of 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. 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.”
