GIC purchases European logistics real estate developer for $2.6b …
GIC Private Ltd., formerly known as Government of Singapore Investment Corp., will purchase logistics real estate developer P3 Logistics Parks for 2.4 billion euros (U.S. £2.63 billion) in the largest European real estate purchase so far this year, according to a statement from P3.
With a portfolio of over 3.3 million square meters of logistics properties, P3 is Europe’s largest owner, developer and manager of integrated logistics properties.
Singapore’s sovereign wealth fund will acquire P3 from TPG Cambridge and Ivanho? Cambridge, which themselves bought P3 in 2013 and have since expanded its business though a series of add-on acquisitions. The company has more than doubled the size of its portfolio in the last three years to include 163 warehouses in nine countries.
According to P3, the firm has also tripled its customer base during the same timeframe.
In addition, the company recently completed a EUR 1.4 billion long-term refinancing with a group of international financial institutions in an effort to support its overall growth strategy.
“With the support of its new shareholder, P3 is well placed to enter the next phase of its growth with a land bank representing up to 1.4 million square meters of development potential,” the company said of the financing, noting that it currently has 11 new sites under construction and 300,000 square meters of approved development scheduled by the end of the year.
The transaction is expected to close by the end of 2016, subject to approval from the relevant regulatory authorities.
“With the backing of TPG Real Estate and Ivanho?
Cambridge, we have been able to significantly expand across our core territories, become a market leader, and create a clear differentiation as a customer-centric business,” P3 CEO Ian Worboys said in a statement. “We are excited to partner with one of the world’s largest sovereign funds in GIC, and we look forward to delivering the same success for our new shareholder. GIC’s long-term investment strategy is closely aligned to our own approach, as a long-term owner and developer of high quality assets.”
“Under our ownership, the business has undergone a period of significant change, growing to be one of the leading fully integrated logistics platforms in Europe,” said Anand Tejani, partner at TPG Real Estate. “P3 has more than doubled in size and has strengthened its asset management, property management and development capabilities. We believe P3 will be well positioned to continue its growth under GIC’s ownership.”
“We believe P3’s strong growth will continue given its diversified, income-producing portfolio and substantial land bank,” Lee Kok Sun, chief investment officer at GIC Real Estate, said of the purchase. “We are confident of the long-term potential of the European logistics sector, and look forward to expanding this attractive platform with the very capable P3 management team.
GIC’s extensive experience in investing in logistics globally also allows us to add value to this partnership.”