GIC acquires P3 Logistic Parks for S$3.69b in biggest European real estate deal this year

P3 Prague Horni Pocernice in Czech Republic.
P3 Prague Horni Pocernice in Czech Republic.PHOTO: P3 LOGISTIC PARKS
P3 Bratislava Park in Slovakia - visualisation after completion.
P3 Bratislava Park in Slovakia - visualisation after completion.PHOTO: P3 LOGISTIC PARKS
P3 Piotrkow, InPost building Poland.
P3 Piotrkow, InPost building Poland. PHOTO: P3 LOGISTIC PARKS

SINGAPORE - Singapore's sovereign wealth fund GIC has signed a definitive agreement to acquire P3 Logistic Parks from TPG Real Estate and its partner Ivanhoé Cambridge for €2.4 billion (S$3.69 billion).

This is the largest European real estate transaction in 2016, said the companies in a joint statement on Monday (Nov 7).

The transaction is subject to regulatory approval and is expected to close by the end of the year. CBRE advised GIC on the purchase.

The acquisition is GIC's largest since it agreed to buy US warehouse owner IndCor Properties Inc in December 2014 from Blackstone Group for US$8.1 billion, according to data compiled by Bloomberg.

GIC is one of the biggest real-estate owners among sovereign wealth funds and is estimated to have US$354 billion of assets under management, according to the London-based Sovereign Wealth Center.

TPG Real Estate and Ivanhoé Cambridge acquired P3, based in the Czech Republic, in 2013. P3 has since grown into one of Europe's largest developers and managers of logistics properties with a 3.3 million square metre portfolio. Through acquisitions over the last three years, P3 has more than doubled the size of its portfolio, which now includes 163 warehouses, in 62 locations, across nine countries.

At the same time, the group has increased its customer base threefold, "demonstrating the strong and growing demand for premium logistics space", said the statement.

P3 also recently completed a €1.4 billion long-term refinancing with a group of international financial institutions, "providing the business with significant additional flexibility to support its growth strategy".

P3 has a land bank representing up to 1.4 million square metres of development potential. Currently, 11 new sites are under construction, with 300,000 square metres of approved development scheduled by the end of the year.

Said Lee Kok Sun, chief investment officer at GIC Real Estate: "We believe P3's strong growth will continue given its diversified, income-producing portfolio and substantial land bank.

"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."