GLP upsizes European Development Fund to target EUR4bn
GLP has announced a strategic expansion in size and scope of GLP Continental Europe Development Partners I (GLP CDP I). GLP and its partners Canada Pension Plan Investment Board (CPP Investments) through its wholly owned subsidiary, CPP Investment Board Europe, and QuadReal Property Group (QuadReal) have agreed to expand the investment capacity of GLP CDP I, and are now targeting EUR4 billion of assets under management (AUM) (~USD4.9 billion) upon stabilisation.
Through this expansion, CPP Investments has committed EUR900 million of equity, representing a 45 per cent share and QuadReal has committed EUR800 million of equity, representing a 40 per cent share, with the remaining 15 per cent held by GLP.
Ralf Wessel, Managing Director, Fund Management, GLP, says: “This upsize is testament to how well GLP CDP I has performed since its inception. Our investment pipeline is considerably ahead of schedule and we are seeing strong demand for our developments, reflecting attractive fundamentals for logistics development across all major hubs in Europe. We look forward to continuing our partnership with CPP Investments and QuadReal to expand GLP CDP I into a truly Pan-European development vehicle.”
GLP CDP I was established in 2018 to develop modern logistics assets in Continental Europe including Germany, France, Italy, Spain and the Netherlands. The upsize will be used to transform GLP CDP I into a Pan-European development vehicle by strategically expanding in the United Kingdom and Central and Eastern Europe markets via the acquisition of landbank and select high-quality logistics development opportunities.
Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPP Investments, says: “GLP CDP I is a key part of our development-led growth strategy in the logistics sector globally. Given the success of the venture to date, we are pleased to be continuing and expanding our partnership with GLP and QuadReal. We have a strong conviction in the logistics and warehousing sector and the ability of GLP to execute on our strategy, enabling us to deliver long-term sustainable returns for our contributors and beneficiaries in Canada."
Jay Kwan, Managing Director, Head of Europe, QuadReal, says: “Expanding our venture with GLP and CPP Investments was a natural evolution of our partnership given its success to date, continued favourable market conditions and strong relationships created with tenants. We’re pleased to be investing alongside two partners with whom we have a lockstep relationship.”
Since entering the European market in 2017, GLP has more than tripled its AUM. Following the upsize of GLP CDP I, GLP now manages more than EUR12 billion (~USD13 billion) of AUM across Europe’s strongest logistics markets.