P3 Logistic Parks (“P3” or the “Group”), a leading specialist pan-European owner, developer and manager of logistics properties, announced today that GIC, Singapore’s sovereign wealth fund, has signed a definitive agreement to acquire P3 from TPG Real Estate and its partner Ivanhoé Cambridge. The transaction values the business at €2.4bn and is the largest European real estate transaction this year. The transaction is subject to regulatory approval and is expected to close by the end of 2016.
TPG Real Estate and Ivanhoé Cambridge acquired P3 in 2013. The Group has since grown into one of Europe’s largest fully integrated logistics platforms and developers with a 3.3 million square metre portfolio. Over the last three years, P3 has completed a series of add-on acquisitions in key European markets, more than doubling the size of the portfolio, which now includes 163 high quality 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.
P3 recently completed a €1.4bn long-term refinancing with a group of leading internationalfinancial institutions, providing the business with significant additional flexibility to support its growth strategy.
With the support of its new shareholder, P3 is well-placed to enter the next phase of its growth with a land bank representing up to 1.4 million square metres of development potential. Currently, 11 new sites are under construction, with 300,000m² of approved development scheduled by the end of the year.
Lee Kok Sun, Chief Investment Officer at GIC Real Estate said: “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. GIC’s extensive experience in investing in logistics globally also allows us to add value to this partnership.”
Eastdil Secured acted as adviser to TPG Real Estate on the transaction.
