GLP, QuadReal, CPPIB to Establish $1B European Logistics Partnership

LONDON—GLP, QuadReal Property Group and the Canada Pension Plan Investment Board report they will be forming a $1.1-billion partnership that will focus on the development of logistics facilities in Germany, France, Italy, Spain, the Netherlands and Belgium.

The entity— GLP Continental Europe Development Partners I— is expected to reach a value of $2.3 billion of assets under management when fully invested.

GLP, QuadReal Property Group and CPPIB, through its wholly-owned subsidiary, CPP Investment Board Europe S.a.r.l., are contributing $1.1 billion (€2 billion) in equity to GLP CDP I. CPPIB will contribute $510 million of equity to the partnership.

Ming Mei, co-founder and CEO of GLP, says of the partnership, “The proposed establishment of GLP CDP I reflects the confidence that institutional investors have in GLP and Gazeley, our Europe platform. We are committed to a long-term growth strategy in Europe. Demand from institutional investors to partner with GLP remains strong and we see opportunities to expand our fund management platform further.”

Andrea Orlandi, managing director, head of real estate investments – Europe, CPPIB, says “This partnership deepens our longstanding relationship with GLP, one of our largest global partners and establishes a new relationship with QuadReal. GLP CDP I is a key part of our development-led growth strategy in the logistics sector globally, and will significantly enhance our existing holdings in Continental Europe. We expect GLP CDP I to grow quickly in scale and perform well over the long term given rising e-commerce sales and consumer demand for ever-shorter delivery times in Europe.”

Jay Kwan, head of Europe, QuadReal, adds, “Research and experience inform our high conviction about developing logistics facilities in select, target markets that will create a resilient industrial portfolio. We are delighted to be partnering with CPPIB and GLP as we invest in the logistics sector across Continental Europe.”

GLP’s Gazeley has signed more than 3.8 million square feet of new leases in Europe since the start of the year to customers including Amazon, Kingfisher, Wayfair and Zeus Packaging. Gazeley has begun construction on more than 5.9 million square feet of new developments in the period as well as replenished its development landbank. With the establishment of GLP CDP I, GLP will have three funds in Europe totaling more than $7 billion of assets under management when fully invested.

GLP, whose US operations are headquartered in Chicago, has approximately $60 billion of assets under management globally. The company’s real estate fund platform totals 700 million square feet. In December 2017, GLP entered the European market through its acquisition of Gazeley, a premier developer, investor and manager of logistics warehouses and distribution parks in Europe.