Gazeley, the property development subsidiary of Yorkshire-based supermarket chain Asda, has been acquired by an investment company backed by the Dubai government for a sum believed to be more than £300m.

Leeds-based Asda's owner Wal-Mart said it had agreed to sell Gazeley to Economic Zones World (EZW), part of Dubai World, so it could concentrate more on its retail operations.

Although Gazeley is based in Milton Keynes it has been an important part of Asda's operations as a preferred developer of distribution space forspace for the chain in the UK.

Gazeley is a market leader in the development of distribution warehousing in the UK, mainland Europe, China, India and Mexico and its customers include third-party logistics providers, original equipment manufacturers, retailers and their suppliers.

Michael Duke, vice chairman of Wal-Mart Stores, said Gazeley's focus on developing distribution warehousing for third-parties did not fit with Asda's strategy.

Mr Duke said: "We believe this sale will enable us to focus more on our retail operations. Since the development of distribution warehousing for third-parties is not a core business for us, Gazeley will be able to better serve its customers as part of an organisation such as EZW, which is committed to providing the necessary resources and investment for further expansion."

Andy Bond, president and chief executive of Asda, said: "I am delighted that Gazeley is to become part of a group that specialises in logistics property development and investment which will be able to support their continued international growth.

"I am extremely proud of what Gazeley has achieved as part of the Wal-Mart and Asda family and I look forward to continuing a long term relationship with them as a customer."

Wal-Mart began looking for a buyer for Gazeley in March when it recruited UBS to explore strategic options for the company.

Pat McGillycuddy, chief executive of Gazeley, said: "Joining EZW will accelerate Gazeley’s global expansion and enhance its offer to customers. We developed the foundations of a great business as part of Asda-Wal-Mart and it’s now time to realise our full potential as a global developer and investor of sustainable logistics space.

"We have produced consistent profit growth over the last five years. I’m sure our successful business model and strong management team will add value to our new business partner."

Dubai World, which also includes port operator DP World, is an investment company that manages and supervises a portfolio of businesses and projects for the Dubai government across a wide range of industry segments and projects that promote Dubai as a hub for commerce and trading.

Established in 1988, Gazeley has dozens of sites under development following its first development at Magna Park in Lutterworth, a former air force base.
 Sourced from