Goodman withdrawing
Several Central European logistics properties got a new owner recently, when GLP bought a EUR 1 billion portfolio from Goodman, thus expanding its field of activities into ten countries.
Central Europe has been something of an El Dorado for logistics real estate activities in recent years. Demand has been high and investors have used properties as welcome opportunities. Goodman, one of the major players amongst the developers of logistics real estate, is now withdrawing from Central Europe, however.
Strategic reorientation
The Australian group is selling its logistics facilities located in Poland, Hungary, Czechia as well as Slovakia to the Singapore-based investment company GLP for a sum of approximately EUR 1 billion.
Goodman justified the sale with the adoption of a strategy of focusing on gateway cities and urban consumer markets in Europe. Philippe Van der Beken, Goodman Continental Europe’s chief executive officer, said that “the proceeds from this transaction will enable us to continue to grow in crucial consumer markets in the United States of America, Germany, France, Spain, Belgium, the Netherlands and Luxembourg.” GLP has been in the logistics real estate business since the acquisition of Gazeley at the end of 2017 and has a portfolio of 2.4 million m².
Presence in ten European countries
By purchasing these facilities GLP has expanded its presence to no less than ten European countries. The logistics and distribution centres are expected to benefit from growing e-commerce activities in the region and provide customers with better supply chains. Gazeley CEO Nick Cook said that “this portfolio complements our geographical presence and offers growth opportunities.”
GLP not only acquired Goodman’s logistics properties, but also took around 40 of the latter’s employees on board. In addition to Goodman, another major group, Prologis, has also been active in Central Europe in recent years. There’s no indication from Prologis that these markets might now become less important.