Brookfield buys warehouse firm in second major European move

 
Kasmira Jefford
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BROOKFIELD Property Partners said yesterday it has bought London-based warehouse developer Gazeley for an undisclosed sum.

The US-listed firm, which was recently spun off from its parent Brookfield Asset Management, said yesterday it has bought Gazeley from a subsidiary of Dubai World, the state-linked firm which triggered Dubai’s debt crisis in 2009.

The deal marks Brookfield's second major European acquisition after the separately-listed Brookfield Office Properties bought Hammerson’s office portfolio last year.

The sale is also the first major divestment of a foreign asset by Dubai World since it agreed on a debt deal with creditors in 2011.

Gazeley has developed vast warehouses and distribution parks across the UK, Europe and China over the past 25 years, and recently completed John Lewis’s distribution centre in Milton Keynes.

Its portfolio includes 524,000 square metres of assets and a land bank of 1.3m square metres.

Brookfield said it will own a 30 per cent of Gazeley and the remainder will be owned by a fund managed by an affiliate of Brookfield Asset Management.

David Brush, managing partner said Gazeley was the first in a number of acquisitions it is hoping to make across the warehouse and logistics sector as the cash-rich property firm seeks to double in size over the next five years.