GLP expands into Europe with acquisition of Gazeley 02 October 2017

GLP has entered into a definitive agreement to acquire Gazeley, a premier developer, owner and operator of modern logistics facilities in Europe for approximately US$2.8 billion (€2.4 billion). 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.

GLP intends to inject the Gazeley portfolio into its fund management platform, in line with previous practice. Investor demand to partner with GLP in the European logistics market is strong and the Company is already in negotiations with interested capital partners.

GLP intends to retain the existing management team and the Gazeley brand. The Gazeley management team averages 19 years of experience managing and developing logistics real estate, with five offices across Europe.

The 3.0 million m2 acquisition portfolio is concentrated in Europe’s key logistics markets, namely the UK (57.0%), Germany (25.0%), France (14.0%) and the Netherlands (4.0%). It comprises 1.6 million m2 of existing assets, which are 98.0% leased with a weighted lease expiry of 9.0 years, and a development pipeline of 1.4 million m2 buildable area.

Approximately 60.0% of existing assets have been built within the last five years and 85.0% of the development pipeline is focused in the UK, one of Europe’s most land-constrained markets.

Nesta Investment Holdings supports GLP’s entry into Europe as part of the long-term strategy to expand its fund management platform. It and GLP do not expect the Europe entry to impact the timeline of the proposed privatisation of GLP.

This transaction is expected to be funded by approximately US$1.6 billion (€1.4 billion) of equity and US$1.2 billion (€1.0 billion) of long-term, low-cost debt. GLP will fund its equity commitment with cash on hand, existing credit facilities and new indebtedness. The Company does not need to issue additional equity to fund this acquisition.