P3 puts €500m European logistics portfolio on the block

The sale – Europe’s largest live logistics portfolio transaction at the moment – is being managed by broker JLL which is now collecting second-round offers, according to well-informed market sources.
 
P3, owned by Singaporean sovereign wealth fund GIC, is believed to be selling the assets as part of its asset recycling programme.
 
The portfolio consists of a total of 16 logistics properties with a combined 373,500 m2 of space across seven countries. Four assets with a total of 88,000 m2 are located in the Czech Republic, with three assets in France (74,000 m2), two in Germany (47,000 m2), one in the Netherlands with 49,000 m2 of space, one in Spain (58,000 m2), one in Italy (32,000 m2) and one in Poland (26,000 m2).
 
Known as the Apex portfolio, the package is expected to fetch between €400 mln and €500 mln, according to those who track the market. It is well diversified with income spread across prime inner-city logistics hubs and key big box markets. One market expert said that it offers exposure to a range of logistics sub-sectors, combining a blend of small and big box assets. Another said the sale offers an ‘unusual proposition’, as it involves several countries and only one or two assets per country which makes it less attractive for buyers looking to build exposure to specific markets.
 
Yet, the portfolio is expected to receive strong bidding given investors’ growing appetite for logistics properties. The sector has emerged a winner in the pandemic, which is accelerating the shift away from physical stores to digital shopping, hence driving growth in the transport and logistics sector.
 
Although limited by the availability of product, Central and Eastern Europe saw industrial and logistics transactions surpass 2019’s levels in the first half of the year – the only commercial property sector to witness growth so far this year.
 
JLL declined to comment.