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GIC to buy European logistics portfolio for 950m euros
GIC has signed an agreement to acquire a pan-European logistics real estate portfolio, Maximus, for around 950 million euros (S$1.44 billion) from funds managed by affiliates of alternative investment manager Apollo Global Management.
This is in line with GIC's strategy to scale up its wholly-owned P3 logistics platform, Singapore's sovereign wealth fund announced on Friday.
Headquartered in Prague, P3 manages and develops European warehouse properties, and has operations in 13 countries. It has over 5.3 million square metres (sq m) of assets under management and land bank for further development.
The Maximus portfolio spans more than 1 million sq m of industrial space. It comprises 28 assets located in core logistics hubs such as Germany, Poland, Slovakia, Netherlands, Belgium and Austria. P3 will manage the portfolio.
Maximus has a diversified tenant base which includes companies in the automotive, e-mobility, distribution, e-commerce and last-mile logistics sectors.
"As a long-term value investor, logistics continues to be an attractive sector for GIC," said Lee Kok Sun, GIC Real Estate chief investment officer. The sector will keep growing, supported by strong e-commerce growth, and is expected to generate steady income streams in the long run, Mr Lee added.
The acquisition is one of the largest real estate investment deals in Europe this year and the largest in Germany, according to P3 Logistic Parks chief investment officer Otis Spencer.
With GIC's support, P3 is also actively looking for further investment deals to strengthen its position in Europe, Mr Spencer said.
The Maximus acquisition is expected to close in the first quarter of 2020, subject to customary closing conditions and any requisite regulatory approvals.