Global Logistic Properties Ltd. Monday announced plans to acquire a portfolio of assets in Europe for EUR2.4 billion ($2.83 billion).
Global Logistic will buy Gazeley, which owns properties totaling 32 million square feet in four European nations, from Brookfield Property Group, the Singapore-listed warehouses operator said in a statement.
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Global Logistic, currently in the process of being acquired by a consortium that includes the company's chief executive as well as Chinese investors Hillhouse Capital Group and Hopu Investment Management Co., has the support of its buyers for the Europe deal, according to a separate statement.
Global Logistic said it plans to syndicate its stake in the European assets as part of its strategy to grow its fund management business.
The company, 37% owned by Singapore's sovereign-wealth fund GIC Pte., is a major global player in the booming business of storing and moving goods from suppliers to consumers. It manages nearly $40 billion in logistics assets -- a bit more than half the amount that No. 1 warehouse owner Prologis Inc. of the U.S. does.
Global Logistic says it is the biggest owner of warehouses in many of the world's most important markets, including China, Japan and Brazil. It is the second largest in the U.S. after Prologis.
Brian Kingston, the chief executive of Brookfield Property Partners, said the company's investment in Gazeley in 2013 has been "excellent" for the fund and its partners.
"Building great businesses is a key pillar of our opportunistic real estate strategy, and Gazeley is a good example of how we have been able to successfully do this," Mr. Kingston said in emailed comments.
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(END) Dow Jones Newswires
October 01, 2017 20:22 ET (00:22 GMT)