Singapore’s Sovereign Fund GIC Lists its Logistics Socimi on the MAB

5 December 2017 – El Economista

Singapore’s sovereign fund GIC has obtained the green light to debut the logistics Socimi that it owns in Spain on the Alternative Investment Market (MAB), according to a statement by the exchange.

The Socimi in question is P3 Spain Logistic Park, which owns eleven logistics centres, as well as one solar panel farm. Its asset portfolio is worth €30.3 million, and so it has set the price for its debut on the stock market at €5.66 per share.

The logistics complexes have a combined surface area of 321,392 m2 and are located in five autonomous regions, although the majority are situated in Madrid and Castilla La Mancha.

Specifically, four of them are located in Madrid, two in Zaragoza, two more in Toledo and one in each of Bilbao, Quer (Guadalajara) and Valencia, respectively. Their surface areas range between 7,729 m2 and 80,037 m2.

In terms of the solar panel farm, it is also located in the Aragonese capital (Zaragoza) and is connected to Endesa Distribución’s network.

The Socimi has leased out all of its logistics centres, each one to a different centre. Its tenants stand out due to the great variety of sectors to which they belong.

Main tenants

According to the firm, its main tenants at the moment include the household appliance manufacturer BSH, the pastry distribution firm Conway, La Casera (Schweppes) and Seur.

In addition, its other tenants also include the furniture firm Arc Distribución, the manufacturer of rubber parts for the automotive sector Saargummi, the company that cleans plastic food containers Europool, the express parcel delivery firm DHL and the cold storage company Montfrisa.

Together these tenants provide the Socimi with annual rental income of €3.44 million, according to information provided in the IPO information brochure.

In the financial section of that document, the Socimi reports that it holds debt of €204 million with its main shareholder, in other words, with the State of Singapore, although that liability does not have a fixed maturity date. The sovereign fund itself will determine the timing and amounts of the debt plus interest that it asks to return.

P3 Spain Logistic Park is coming onto the market at a time when it is also analysing new asset investments, including “turnkey” projects and those already constructed, provided they fulfil the requirements of the firm’s growth strategy.

According to the information brochure, this business policy involves buying logistics assets used primarily for the distribution and storage of goods, which are located in the centre of the country or along the Mediterranean corridor, and which are guaranteed to generate “consistent revenues” over the medium term.

The Singapore fund’s Socimi states that it is an owner with a long-term investment profile, and so it rules out the sale of any of its assets (for the time being).

Original story: El Economista

Translation: Carmel Drake

263