Brookfield Property Partners today announced the acquisition of logistics developer EZW Gazeley Limited from Economic Zones World. Brookfield Property Partners will own an approximate 30% interest in Gazeley.
Brookfield Property Partners, L.P. (NYSE: BPY, TSX: BPY.UN) made the acquisition along with its institutional partners through a fund managed by an affiliate of Brookfield Asset Management, Inc. (NYSE: BAM, TSX: BAM.A) the amount paid for the acquisition was not immediately disclosed by the company.
Gazeley is a specialist developer of large scale logistics warehouses and distribution parks in key strategic locations across the UK, Western Europe and China. Over the past 25 years, Gazeley has completed approximately 7 million square meters (75 million square feet) of high quality, cost effective warehouses.
Gazeley’s current portfolio includes 524,000 square meters (5.64 million square feet) of existing assets and a substantial land bank of 1.3 million square meters (14 million square feet) with a further 1.1 million square meters (11.84 million square feet) held under option agreements.
The acquisition of Gazeley provides Brookfield exposure to high quality assets, which offer potential growth and value enhancement. Brookfield will seek to build upon Gazeley’s extensive European footprint while capitalizing on its experience and growing presence in the Middle East and China. Brookfield’s capital base, property operating experience and global platform will transform Gazeley from a developer of logistics warehouses to a full-service logistics asset manager, allowing Gazeley to offer a wider range of services to its customers.
Commenting on the transaction, Pat McGillycuddy, Chief Executive Officer of Gazeley,said, “Gazeley has enjoyed a strong and successful relationship with EZW since its acquisition in 2008. Gazeley and its management team are excited about beginning a new chapter under Brookfield’s ownership and believe that Brookfield will provide the support and expertise to transform Gazeley into a full service logistics asset manager.”
From Brookfield Property Group, CEO Ric Clark, commented, “We are pleased to have completed the acquisition of Gazeley, a high quality business with a great track record, strong management team and global footprint. With Brookfield’s financial resources we see great opportunities to grow the business both as an investor and a developer of logistics assets.”
Including build-to-suit projects, Gazeley currently has five projects in China including G Park Beichen in Tianjin, G Park Chengdu, G Park Nanjing, Magna Park Baodi – Tianjin and Magna Park Xianghe in Hebei.