TPG, Ivanhoé Cambridge Sell European Logistics Park Owner

By Scott Baltic, Contributing Editor

P3 Logistics industrial facility in Bratislava, Slovakia

Prague—GIC, Singapore’s sovereign wealth fund, has agreed to purchase P3 Logistic Parks, a major European owner, developer and manager of logistics properties, from TPG Real Estate and its partner, Ivanhoé Cambridge, the parties announced jointly on Monday.

The transaction values P3 at €2.4 billion ($2.7 billion) and reportedly is the largest European real estate transaction this year. Pending regulatory approval, the transaction is expected to close by the end of this year.

TPG Real Estate and Ivanhoé Cambridge had acquired P3, then known as PointPark Properties, in 2013.

Since then, P3 has grown into one of Europe’s largest fully integrated logistics platforms and developers with a 3.3 million-square-meter (35.5 million-square-foot) portfolio. Over the last three years, the company has completed a series of acquisitions that more than doubled the size of the portfolio, which now includes 163 warehouses, in 62 locations, across nine countries.

Further, it has a land bank representing up to 1.4 million square meters (15 million square feet) of potential development. Currently, 11 sites are under construction, with 300,000 square meters (3.2 million square feet) of approved development scheduled by the end of the year.

“GIC’s long-term investment strategy is closely aligned to our own approach, as a long-term owner and developer of high-quality assets,” P3 CEO Ian Worboys said in a prepared statement.

“We believe P3’s strong growth will continue given its diversified, income-producing portfolio and substantial land bank,” added Lee Kok Sun, Chief Investment Officer at GIC Real Estate. “We are confident of the long-term potential of the European logistics sector….”

Eastdil Secured acted as adviser to TPG Real Estate on the transaction.

In early October, P3 completed a €1.4 billion ($1.6 billion) long-term refinancing arranged with multiple international financial institutions.

The facilities are located in:

• Western Europe and Poland—fully underwritten by Morgan Stanley, with Pbb acting as agent.
• Czech Republic and Slovakia—via a consortium 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.
• Romania—via Raiffeisen Bank International.

Image courtesy of P3 Logistics Parks