Singapore’s GIC has agreed to purchase P3 Logistics Parks, a leading pan-European logistics business, from TPG Real Estate and its partner, Ivanhoé Cambridge, for €2.4bn.
P3 Logistics is one of Europe’s largest fully integrated logistics platforms and developers, with a 3.3m sqm portfolio located across nine countries in Europe.
Lee Kok Sun, CIO at GIC Real Estate said: “P3’s strong growth will continue, given its diversified, income-producing portfolio and substantial land bank.”
Lee added that GIC was confident of the long-term potential of the European logistics sector and looked forward to expanding what he called an attractive platform with the P3 management team.
“GIC’s extensive experience in investing in logistics globally allows us to add value to this partnership,” he said.
A spokesperson for GIC told IPE Real Estate the investment in P3 capitalised on the long-term potential of the European logistics sector, which is driven by significant e-commerce growth as more businesses focus on direct-to-consumer home deliveries.
She said there was an under-supply of logistics facilities in Europe.
“By working together with P3’s strong in-house team,” she said, “we can scale-up through developments and acquisitions, as well as drive portfolio value through leasing and value-add refurbishments.”
In March last year, GIC established a €300m partnership with Exeter Property Group, an industrial real estate investment management specialist, to invest in logistics properties in key European distribution hubs.
Today’s transaction, described as the largest in the logistics sector in Europe this year, is expected to close by year-end, subject to regulatory approval.
TPG Real Estate and Ivanhoé Cambridge acquired P3 in 2013 and have since bolted on acquisitions in key European markets, more than doubling the size of the portfolio over three years.
P3 recently completed a €1.4bn long-term refinancing arrangement with a group of leading international financial institutions, providing the business with significant additional flexibility to support its growth strategy.
Ian Worboys, chief executive at P3, said: “GIC’s long-term investment strategy is closely aligned to our own approach, as a long-term owner and developer of high-quality assets.”
Anand Tejani, partner at TPG Real Estate, said P3 would be “well positioned to continue its growth under GIC’s ownership”.