GLP has launched a new fund, targeting €2bn (£1.8bn) of assets under management across continental Europe when fully invested.
It will partner with QuadReal Property Group and the Canada Pension Plan Investment Board, through its wholly owned subsidiary, CPP Investment Board Europe Sarl, to set up the fund.
The partners will put €1bn equity into the fund, called Continental Europe Development Partners I. CPPIB will contribute €450m of this total.
GLP CDP I will focus on developing sheds in Germany, France, Italy, Spain, the Netherlands and Belgium.
Ming Mei, co-founder and chief executive of GLP, said: “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 and head of real estate investments for Europe at CPPIB, said: “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.”
GLP has approximately $60bn (£47bn) of assets under management. Including GLP CDP I, the logistics investor-developer will have three funds in Europe totalling more than €6bn of assets under management when fully invested.
Following the acquisition of Gazeley last year, GLP established GLP Europe Development Partners I, a development venture, and GLP Europe Income Partners I, which is seeded with a €1.7bn portfolio of Gazeley’s operating assets in the UK, Germany, France and the Netherlands.
These two European funds are fully allocated.
Gazeley has signed more than 3.8m sq ft of new leases since the start of 2018 to customers including Amazon, Kingfisher, Wayfair and Zeus Packaging.
It has begun construction on more than 5.9m sq ft of new developments in the period and has “replenished” its development landbank.
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