UK-based Gazeley, a subsidiary of US retailer Wal-Mart, was put up for sale earlier in the year as it was no longer seen as being core to the latter's business. Gazeley will be taken over by Jebel Ali Free Trade Zone (Jafza), a part of the Dubai World group which also includes port operator DP World.
According to press reports, there were a number of interested bidders for the developer which has properties in the UK, mainland Europe, China, Mexico and India. They apparently included a Bahrain company as well as a rival UK developer, Segro.
Dubai World is a government-owned holding company which operates in a highly diversified range of industrial segments, namely transport & logistics, drydocks & maritime, urban development and investment & financial services. While the 'credit crunch' is having an effect on industry in other parts of the world, that is clearly not the case in the Middle East and further acquisitions or investments may well be underpinned by money from that source.
It is believed that Gazeley's transition to the ownership of Dubai World will have little impact on existing management structures. That was likely not to have been the case if the acquisition had been undertaken by a competitor.
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