Singapore: GIC acquires P3 for €2.4b from TPG Real Estate, Ivanhoé Cambridge

Singapores’ sovereign wealth fund GIC has acquired Czech corporation P3 Logistic Parks, the pan-European owner, developer and manager of logistics properties, from TPG Real Estate and its partner Ivanhoé Cambridge. Eastdil Secured acted as adviser to TPG Real Estate on the transaction.

The transaction that values the business at €2.4 billion ($2.65 billion), is the largest European real estate transaction fo 2016 and is subject to regulatory approval. This transaction is expected to close by the end of 2016.

TPG Real Estate and Ivanhoé Cambridge acquired P3 in 2013 and have overseen its growth into one of the largest fully integrated logistics platforms and developers in Europe, with a 3.3 million square metre portfolio.

Since acquisition, it has conducted a series of add-on acquisitions in key European markets, more than doubling the size of the portfolio. To date, its portfolio includes 163 high quality warehouses in 62 locations across nine countries and reports tripling its customer base with the At the same time, the group has increased its customer base threefold, demonstrating the strong and growing demand for premium logistics space.

Industrial and logistics investment in Europe remained buoyant, amounting €26.7 billion ($29.5 billion) during 2015, according to information from BNP Paribas, which noted strong investor demand coupled with the strong take-up. However, yields are in a period of decline across European markets.

In Europe, the UK accounts for an estimated 36 per cent of European industrial and logistics investments, with €9.7 billion ($10.7 billion) achieved in 2015, with strong competition among investors leading to a decline on prime yields.

Germany saw €4.65 billion ($5.1 billion), a 10 per cent increase, with yields in the seven locations declining by a mean of 100 basis points compared with the end of 2014. Munich remains the most expensive market, with a net prime yield of 5.20 per cent.

In its latest investment in Germany, In September P3 acquired a 78,000 sqm site adjacent to its P3 Kamen park in the eastern Ruhr. P3 will develop around 44,000 sqm of new logistics space on the site, increasing the size of its largest German logistics park by a third, to a total of 24 hectares.

In addition, P3 recently completed a €1.4 billion ($1.55 billion) long-term refinancing facility with a group of leading international financial institutions, providing the business with significant additional flexibility to support its growth strategy.

The facilities are focused on: Western Europe & Poland, fully underwritten by Morgan Stanley, with Pbb acting as agent; Czech Republic & Slovakia through a club of five Czech and Slovak banks; ČSOB, which acted as the agent, ČSOB Slovakia, Komerční Banka, UniCredit Bank, and Česká Spořitelna. ČSOB is part of KBC Group, Komerční Banka is part of Société Générale Group, and Česká Spořitelna is part of Erste Group; and Romania via Raiffeisen Bank International (RBI).

According to P3, its next phase of its growth will see it build a land bank representing up to 1.4 million square metres of development potential; 11 new sites are under construction, with 300,000 square metres of approved development scheduled by the end of 2016.

Commenting on this development, 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,” Lee adds.

A report by market research firm Technavio suggests that for 2016-2020, the logistics market in Europe will grow at a moderate compound annual growth rate (CAGR) of close to 7 per cent over the forecast period, with the growing e-commerce market in Europe is a key factor driving the growth of this market in coming years.

In 2015, the European e-commerce market in Europe was reportedly valued at US$480 billion. With efficient supply chain management, in terms of logistics and warehouse services, the primary business function of most e-commerce firms, this growth will directly impact the logistics market in Europe in a positive way during the next four years and the prospects for P3.

Also Read:

GIC aims to sell shares in Shakey’s Pizza Philippines IPO

Singapore: GIC main investor in Orchard Street special situations fund

Blackstone, Singapore GIC said to be shortlisted for DLF rental assets

Singapore: GIC partners GSA to build up assets in German student housing market

Singapore: GIC exploring acquisition of National Lifestyle Villages from Blackstone

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.

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.