GIC, Exeter in S$448m deal to invest in European logistics

SINGAPORE — Sovereign wealth fund GIC has joined hands with United States industrial real estate investment management specialist Exeter Property Group in a €300 million (S$448 million) partnership to invest in logistics properties in key European distribution hubs.

The venture seeks to tap on the rising demand for logistics space 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,” GIC and Exeter said in a joint statement yesterday.

Mr Christopher Morrish, Regional Head, Europe at GIC Real Estate, said: “We believe that by combining our strength as a long-term value investor with Exeter’s leading logistics management skills, our partnership will be able to create a high quality portfolio of logistics assets.”

GIC is ranked by the Sovereign Wealth Fund Institute as the world’s eighth-largest fund with about US$320 billion of assets.

Real estate constitutes 9 to 13 per cent of GIC’s portfolio and it has been stepping up investments in this sector across the globe.

Also yesterday, GIC and Indian property developer Brigade Group said their joint venture, Brigade Properties, had acquired a site in Whitefield, Bangalore, where it will develop an IT Special Economic Zone of over 3 million sq ft. No financial details were disclosed in the statement.

In December, GIC partnered Singapore-listed Global Logistics Properties to acquire IndCor, the industrial real-estate arm of American investment giant Blackstone Group, for US$8.1 billion. AGENCIES