Singapore’s sovereign wealth fund GIC has set up a €300 mln joint venture with industrial specialist Exeter Property Group to invest in logistics properties across Europe.

Singapore’s sovereign wealth fund GIC has set up a €300 mln joint venture with industrial specialist Exeter Property Group to invest in logistics properties across Europe.

The partners aim to build up a portfolio of value-add opportunities at core locations in key European distribution hubs which offer easy access to motorways, water ports (both inland and sea faring), airports and rail nodes.

Exeter will manage the partnership and use its operational skills to acquire and actively manage the assets and implement value-add strategies, including development and redevelopment.

Commenting on the joint venture, Paul Rubincam, president and managing principal of Exeter Europe said: ‘We believe GIC's sophistication coupled with our operator skill set and agile, decentralised organisational structure will allow us to identify and execute acquisitions and developments ranging from one-off, vacant or fully let assets to large-scale portfolios.’

Christopher Morrish, head of Europe at GIC Real Estate said: ‘We believe that by combining our strength as a long-term value investor with Exeter's leading logistics management skills, our partnership will be able to create a high-quality portfolio of logistics assets.’

The two companies believe that demand for logistics space at key distribution hubs will increase in the long term due to the growing trend of e-commerce, supply chain reorganisation and the increased use of third-party logistics providers.

Exeter Property Group is an international real estate investment manager specialising in logistics, light industrial and business park properties. The firm manages $3 bn of AUM on behalf of institutional investors and operates out of 15 regional offices across the US, UK and Western and Central Europe.

GIC manages Singapore’s foreign reserves and has well over $100 bn in assets under management across more than 40 countries worldwide.