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GIC to acquire €2.4bn P3

The Singaporean sovereign wealth fund is set to make Europe’s largest property deal of the year by agreeing to purchase TPG and Ivanhoé Cambridge’s European logistics platform.

Government Investment Corporation (GIC), the Singaporean sovereign wealth fund, is set to acquire Point Park Properties (P3) in a deal valuing the logistics platform at €2.4 billion – Europe’s largest property transaction of 2016.

P3, a specialist pan-European owner, developer and manager of logistics properties, is currently owned by TPG Real Estate and Ivanhoé Cambridge who acquired the company in 2013.

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.”

Headquartered in Prague, P3 owns 163 warehouses across Bulgaria, the Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Slovakia and Spain, totaling 35.5 million square feet of sheds.

P3 also has a land bank representing up to 15 million square feet of development potential. Currently, 11 new sites are under construction, with 3.2 million square feet of approved development scheduled by the end of the year.

“P3 is a good example of our platform-based investment strategy, and we are very proud of what we have accomplished together. Under our ownership, the business has undergone a period of significant change, growing to be one of the leading fully integrated logistics platforms in Europe,” said Anand Tejani, a partner at TPG Real Estate.

Subject to regulatory approval, the transaction is expected to close by the end of 2016.

Eastdil Secured acted as adviser to TPG Real Estate and CBRE advised GIC on the transaction.