GIC consolidates European logistics platform with €950m portfolio

GIC is acquiring a pan-European logistics real estate portfolio from Apollo Global Management for approximately €950m.

The Singapore sovereign wealth fund will add the 1m sqm Maximus portfolio to its fully-owned European logistics platform, P3 Logistic Parks, which it acquired in 2016.

The 28 assets are in core logistics hubs across Europe, including Germany, Poland, Slovakia, Netherlands, Belgium and Austria.

Tenants include companies in the automotive, e-mobility, distribution, e-commerce and last-mile logistics sectors.

Lee Kok Sun, CIO of GIC Real Estate, said: “As a long-term value investor, logistics continues to be an attractive sector for GIC.

“It is set to keep growing, supported by strong e-commerce growth, and we expect it to generate steady income streams in the long run.

“Our P3 logistics platform in Europe is an important part of our global logistics portfolio, and this acquisition of high-quality, income-producing logistics assets across Europe is aligned with our strategy to efficiently scale up P3, and effectively strengthen its position as a leading developer and manager of logistics properties in the region.”

Otis Spencer, CIO of P3, said: “P3 is well placed to integrate the Maximus portfolio into our existing pan-European warehouse platform.

“This acquisition is one of the largest real estate investment deals in Europe this year, and the largest in Germany.

“This reflects our multi-faceted investment strategy to grow our market share in the pan-European market through both development and acquisition.

“With the support of our owner, GIC, we are actively looking for further investment deals to strengthen our position as one of Europe’s leading developers and managers of logistics properties.”

Sebastian-Dominik Jais, partner at Apollo, said: “We are excited to further strengthen our deep relationship with GIC in connection with this transaction, and we look forward to continuing to seek to invest in highly attractive asset classes across a number of geographies, including Germany, as part of the long-standing successful investment mandate of our European Principal Finance funds.”