GIC to invest over $321 million in Spanish property firm

Singaporean sovereign wealth fund GIC has agreed to pay more than 200 million euros (S$321.63 million) for a 30 per cent stake in unlisted Spanish real estate firm Gmp, the two companies said in a statement on Wednesday. -- PHOTO: BLOOMBERG
Singaporean sovereign wealth fund GIC has agreed to pay more than 200 million euros (S$321.63 million) for a 30 per cent stake in unlisted Spanish real estate firm Gmp, the two companies said in a statement on Wednesday. -- PHOTO: BLOOMBERG

SINGAPORE - Singaporean sovereign wealth fund GIC has agreed to pay more than 200 million euros (S$321.63 million) for a 30 per cent stake in Spanish real estate firm Gmp.

The investment will enable Gmp to strengthen its position as a major investor in the office and business park segment in Madrid and Barcelona, GIC said in a statement on Thursday.

"As a long-term value investor, this is a good opportunity for GIC to gain access to a large and diversified office portfolio in Madrid and leverage on Gmp's local expertise to grow our exposure," Chris Morrish, regional head of Europe at GIC Real Estate, said in the statement.

Francisco Montoro, CEO of Gmp, said the funds "will be used to foster growth through new investments, refurbishment and development projects".

In line with this plan, Gmp has acquired the former headquarters of Altadis on 15 July, an office building at 10 Eloy Gonzalo Street, Madrid, with a gross leasable area of more than 13,000 sq metres, on which full refurbishment work has already started.

Established in 1979, Gmp is a major unlisted property group that currently owns more than 410,000 sqm of space in operation, which includes 4,200 parking spaces, and a land bank for new projects, with a buildable area of 86,601 sqm. The company has also managed over 300,000 sqm of buildable space for third parties during the last ten years.

Its property portfolio includes buildings such as Génova 27, Hermosilla 3, Castellana 81, Alcalá 16 and business parks such as Parque Norte, Castellana Norte and Iberia Mart.