Singapore-based GLP announced on Friday that it has entered into an agreement to acquire Goodman Group’s Central and Eastern Europe logistics real estate portfolio for around €1 bn.
GLP is making the purchase through its Gazeley logistics arm, which it bought in December 2017 in its first foray in the European market. Gazeley is a developer, investor and manager of European logistics warehouses and distribution parks with a 2.4 million m2 portfolio across the UK, Germany, France, Spain, Italy, Poland and the Netherlands.
The new acquisition will allow GLP and Gazeley to expand their European presence to 10 countries. Goodman’s portfolio is spread across Poland, Czech Republic, Slovakia and Hungary and covers around 1.3 million m2 over some 40 distribution centres and an additional 1.1 million m2 landbank. It is concentrated on key logistics routes across the region with access to growing markets for e-commerce and distribution. As part of the deal, Gazeley will also take over Goodman Group’s Central and Eastern European approximately 40-person team.
The acquisition of the portfolio follows a broader European expansion since GLP entered the market at the end of 2017. In the past year, it has opened offices in both Spain and Italy following of a number of development opportunities.
Nick Cook, Chief Executive Officer, Gazeley, said: ‘This deal is a very exciting part of our European growth strategy. The scale and geographic footprint of the portfolio is highly complementary to our existing business and offers us compelling opportunities for growth in a number of important European markets. We are confident that the addition of this portfolio will support us in delivering further value to investors and our customers. We very much look forward to welcoming the team, its customers and partners to Gazeley in the coming months.’
For the vendors, Goodman and the Goodman European Partnership, the sale is part of a strategy to focus the portfolio on gateway cities and major urban consumer markets in Continental Europe.
Philippe Van der Beken, Chief Executive Officer Goodman Continental Europe said: ‘The proceeds of this transaction will enable us to capitalise on the strong demand for industrial property and continue to scale up in the major consumer markets in Germany, France, Spain, Benelux and Italy. We will continue to focus on owning high-quality properties and building out our significant development pipeline in these markets, where barriers to entry are high and land is scarce. This should see our European portfolio grow to in excess of €4 bn.’
Goodman Group is on track to surpass A$50 bn (€28.8 bn) assets under management in June 2020 and remains one of the largest developers of industrial real estate in Europe and globally.
Kirkland & Ellis served as legal counsel to GLP, with Greenberg Traurig and Kinstellar providing local legal advice. Cushman & Wakefield served as advisors to GLP and Goldman Sachs and Citi have committed to finance the acquisition.
The transaction is subject to regulatory approval.