Singapore's GIC snaps up European logistic parks

It is the biggest real-estate deal in the region at $3.69b.

In what was considered as the biggest real-estate transaction in Europe, Singapore's sovereign wealth fund GIC has signed a definitive agreement to acquire P3 from TPG Real Estate and its partner Ivanhoé Cambridge. The transaction values the business at €2.4b or $3.69b.The transaction is subject to regulatory approval and is expected to close by the end of 2016.

According to a joint statement, TPG Real Estate and Ivanhoé Cambridge acquired P3 in 2013. The Group has since grown into one of Europe's largest fully integrated logistics platforms and developers with a 3.3 million square metre portfolio. Over the last three years, P3 has completed a series of add-on acquisitions in key European markets, more than doubling the size of the portfolio, which now includes 163 high quality warehouses, in 62 locations, across nine countries. At the same time, the Group has increased its customer base threefold, demonstrating the strong and growing demand for premium logistics space.

Lee Kok Sun, Chief Investment Officer at GIC Real Estate said the fund expects the logistic parks' strong growth to persist given its diverse land bank.

“We believe P3's strong growth will continue given its diversified, income-producing portfolio and substantial land bank. 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,” Lee noted

Meanwhile, P3 CEO Ian Worboys said: "With the backing of TPG Real Estate and Ivanhoé 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. 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."