GIC Completes $2.7B Acquisition of European Warehouse Platform

Singapore’s sovereign wealth fund, GIC, has completed its €2.4 billion ($2.7 billion) acquisition of P3, a specialist owner, developer and manager of European logistics properties from TPG Real Estate and Ivanhoe Cambridge. The deal, which is said to be one of the largest European real-estate deals of 2016, was recently finalized after approval from EU regulators. It was announced in November of last year.

“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,” said Lee Kok Sun, Chief Investment Officer at GIC Real Estate. “GIC’s extensive experience in investing in logistics globally also allows us to add value to this partnership.”

GIC is the largest single shareholder in Global Logistic Properties, a Singapore-based warehouse developer which is the dominant logistics space provider in China, as well as the second-largest operator of warehouses in the US.

Another 1.4M Square Metres of Euro-Sheds On the Way

Prague-based P3, which has warehouses in over 163 locations in nine European countries, was purchased by TPG and Cambridge in 2013. Under its new ownership, the developer has since expanded through numerous add-on acquisitions and completed a €1.4 billion, long-term refinancing in October 2016. P3 now plans to develop a land bank representing 1.4 million square meters of development potential in addition to attaining new sites.

“We are all very excited to now be partnering with one of the world’s largest sovereign funds and we look forward to moving forward into the next stage of our growth strategy,” Ian Worboys, CEO of P3, said.

In addition to its stake in GLP, GIC partnered with Indonesian logistics developer PT Mega Manunggal Property to invest 720 million dollars in warehouse properties in Southeast Asia’s largest economy in October. The fund also increased its presence in South Korea’s logistics market last year through investments in a real estate fund managed by ADF Asset Management, which attained the Hyundai Logistics Distribution Center in Incheon from LogisKowel for $130 million.

Could European Platform Replace GLP?

According to information gathered by Bloomberg, GIC’s newest acquisition is its largest since the fund backed GLP’s $8.1 billion purchase of US warehouse owner IndCor Properties from Blackstone in 2014.

The completed acquisition in Europe comes as GIC may be preparing to dispose of its stake in GLP after the Singapore-based developer announced today that it is seeking buyers for its $7.5 billion business. GLP had reported last month that it had hired investment bank JP Morgan to complete a strategic review of its business, following reports that China’s sovereign wealth fund, CIC, was offering to acquire the company.