Property developer Gazeley has been sold to Brookfield Property Partners and associates, which intends to turn it into a full service logistics asset manager.
Gazeley, which was owned by Dubai World, has 5.64m sq ft of existing assets plus a land bank of 14m sq ft and a further 11.84m sq ft held under option agreements.
Toronto-based Brookfield owns PD Ports and Euroports. It said it would seek to build upon Gazeley’s European footprint while capitalising on its experience and growing presence in the Middle East and China.
“Brookfields 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.”
Gazeley CEO Pat McGillycuddy said: “Gazeley and its management team are excited about beginning a new chapter under Brookfields ownership and believe that Brookfield will provide the support and expertise to transform Gazeley into a full service logistics asset manager.”
Brookfields portfolio includes interests in over 300 office and retail properties encompassing approximately 250 million square feet. CEO Ric Clark said: “With Brookfields financial resources we see great opportunities to grow the business both as an investor and a developer of logistics assets.”
Gazeley is thought to have been valued at £375 million. Under the terms of the deal Brookfield Property Partners and its institutional partners through a fund managed by an affiliate of Brookfield Asset Management is acquiring EZW Gazeley from Economic Zones World, part of Dubai World. Brookfield Property Partners will own an approximate 30 per cent interest in Gazeley.
Gazeley was originally set up by retailer Asda in 1987 to develop logistics facilities for the group as well as for other occupiers. Asda sold the business to Dubai World in 2008.