GIC to acquire pan-European logistics real estate portfolio for $1b

Photo from Apollo Global Management

Singapore’s sovereign wealth fund GIC announced Friday that it is acquiring a pan-European logistics real estate portfolio from funds managed by affiliates of Apollo Global Management Inc for 950 million euros ($1 billion).

GIC is acquiring the Maximus portfolio, which covers over 1 million square meters of industrial space and comprises 28 logistics assets located in logistics hubs across Europe, including Germany, Poland, Slovakia, the Netherlands, Belgium, and Austria.

The acquisition is expected to close in the first quarter of 2020.

“This acquisition is in line with GIC’s strategy to scale up its fully-owned P3 logistics platform and reinforce P3’s position as a leading developer and manager of logistics properties in Europe,” according to the announcement.

P3 Logistics Parks is a European logistics property company that GIC acquired in 2016 for 2.4 billion euros ($2.7 billion) from TPG Real Estate and its partner Ivanhoe Cambridge. The deal was said to be the largest European real estate transaction that year.

P3, headquartered in Prague, manages and develops European warehouse properties, and has operations in 13 countries, with over 5.3 million sq m assets under management and land bank for further development.

The Maximus portfolio, which will be managed by P3, has a diversified tenant base, including companies in the automotive, e-mobility, distribution, e-commerce, and last-mile logistics sectors, among others.

“Our P3 logistics platform in Europe is an important part of our global logistics portfolio and this acquisition of high-quality, income-producing logistics assets across Europe is aligned with our strategy to efficiently scale up P3,” said Lee Kok Sun, GIC Real Estate’s Chief Investment Officer.

P3 Logistics Park Chief Investment Officer Otis Spencer said the Maximus portfolio will be integrated into P3’s existing pan-European warehouse platform as the firm continues to actively look for further investment deals to strengthen its position as one of Europe’s top developers and managers of logistics properties.

GIC has been aggressively buying property in advanced markets since the 2008 financial crisis. Most recently, the Singapore fund snapped up PB6, a Grade A office tower in Paris, for a reported $592 million.

PB6, also known as Tour EDF, was built for and is fully leased by Electricite de France (EDF), France’s main electricity company. It is the tallest skyscraper built in the La Defense business district in Paris.

In October last year, GIC acquired Tour Ariane, another 40-storey office tower in the heart of the La Defense business district in Paris. The property was acquired from Unibail-Rodamco-Westfield, a European commercial real estate company.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.