GIC ties up with US property firm to invest in logistics properties in Europe

SINGAPORE'S sovereign wealth fund GIC said on Monday it has set up a 300 million euro (S$446 million) partnership with America's Exeter Property Group to invest in logistics properties in key European distribution hubs.

Exeter, headquartered in suburban Philadelphia, specialises in industrial real estate investment management. It manages US$3 billion in equity assets on behalf of institutional investors, holds more than 85 million square feet of properties, and operates out of 15 regional offices across the United States, UK and Western and Central Europe.

GIC and Exeter said in a joint news release: "The partnership will invest in logistics properties in key European distribution hubs, which offer easy access to motorways, water ports (both inland and sea faring), airports and rail nodes. Over the long term, there will be an increasing demand for logistics space in these locations due to the growing trend of e-commerce, supply chain reorganisation and the increased use of third party logistics providers."

The partnership intends to build a portfolio by targeting value-add opportunities in core locations. Exeter will manage the partnership and use its integrated real estate operator skills to acquire and actively manage the assets and implement value-add strategies including development and redevelopment to generate stable, long-term income returns.