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Singapore Sovereign Fund Acquires P3 Logistics Parks

17 November 2016 – Expansión

GIC, the Singapore sovereign fund, is strongly committed to the European logistics sector. The investment group has just completed the acquisition of P3 Logistic Parks, one of the largest companies specialising in the logistics segment on the continent. The operation will be one of the largest transactions in the real estate market in Europe this year. GIC will pay €2,400 million in total to the funds TPG Real Estate and Ivanhoe Cambridge, which purchased P3 in 2013.

With this purchase, GIC is entering the Spanish logistics sector with a bang, given that P3 Logistics Parks owns 80,000 m2 of storage space in the country, spread over five assets. Specifically, the group owns one platform in Abrera (Barcelona), another one in Pedrola (Zaragoza) and three in the central region: in Valdemoro (Madrid), Alovera and Fontanar (Guadalajara). Its clients are major transportation companies, which lease all of the available surface area.

In total, P3, which is headquartered in Prague, controls logistics platforms with a combined surface area of 3.3 million m2, across Europe. Since TPG acquired the company three years ago, the firm has doubled in size through acquisitions, and now has a network of 163 logistics centres, located in 62 cities across nine European countries.

This year, P3 has completed a long-term debt financing process worth €1,400 million, with the aim of strengthening its growth strategy and securing some financial breathing room.

GIC’s challenge is to drive a new expansion phase to take advantage of the international boom in the logistics sector, driven in large part by the increase in online commerce. For this, P3 owns a portfolio of land on which it could build an additional 1.4 million m2 of logistics space.

New developments

In fact, the logistics park operator is already building eleven new complexes, which will generate 300,000 m2 of additional space over the next few months.

“We are delighted to have one of the most important sovereign funds in the world as our partner; GIC’s long-term investment strategy is very much aligned with our vision to build high quality assets and be long-term owners”, said Ian Worboys, CEO of P3.

Original story: Expansión (by S. Saborit)

Translation: Carmel Drake