Singapore wealth fund GIC acquires P3 Logistics for $3.7 billion

P3 Logistics owns, develops and manages 163 warehouses in Europe.

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Singapore's Minister Mentor Lee Kuan Yew, chairman of the Government of Singapore Investment Corp. (GIC), speaks at GIC's 25th anniversary dinner at a hotel in Singapore in this July 11, 2006 file photo. Reuters

The Government of Singapore Investment Corporation (GIC) has agreed to buy European logistics property company P3 Logistics Parks for S$3.7 billion.

In the largest European real estate transaction this year, the Singapore government sovereign wealth fund will acquire P3 Logistics, which owns, develops and manages 163 warehouses in Europe, from its owners TPG Real Estate and its partner Ivanhoé Cambridge.

CBRE advised GIC on the transaction.

P3's strong growth will continue given its diversified, income-producing portfolio and substantial land bank, GIC Real Estate chief investment officer Lee Kok Sun said in a statement.

"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," the statement added.

After TPG Real Estate and Ivanhoé Cambridge's acquisition of P3 in 2013, the company more than doubled its portfolio and has operations in 62 locations in nine countries.

"We are excited to partner with one of the world's largest sovereign funds in GIC, and we look forward to delivering the same success for our new shareholder. 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 statement.