SINGAPORE: Sovereign wealth fund GIC will be acquiring P3 Logistics Parks, a company that owns, develops and manages 163 warehouses in Europe, in a deal worth €2.4 billion (S$3.7 billion).
In a joint media release on Monday (Nov 7), it was announced that GIC has signed a definitive agreement to acquire P3 from TPG Real Estate and its partner Ivanhoé Cambridge.
“The transaction values the business at €2.4 billion and is the largest European real estate transaction this year,” the statement said.
TPG Real Estate and Ivanhoé Cambridge acquired P3 in 2013 and over the last three years, P3 has more than doubled the size of the portfolio, which now includes 163 high quality warehouses in 62 locations across nine countries.
Ian Worboys, CEO of P3 said: “We are excited to partner with one of the world’s largest sovereign funds in GIC, and we look forward to delivering the same success for our new shareholder. GIC’s long-term investment strategy is closely aligned to our own approach, as a long-term owner and developer of high quality assets.”
Lee Kok Sun, Chief Investment Officer at GIC said that P3’s strong growth will continue given its diversified, income-producing portfolio and it’s 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. GIC’s extensive experience in investing in logistics globally also allows us to add value to this partnership,” said Lee.
The transaction is subject to regulatory approval and is expected to close by the end of 2016.
