P3 sells Apex portfolio to Chinese investment firm

CGL Investment Holdings Corporation, a global private equity and infrastructure investment manager, has acquired 16 properties from GIC-owned logistics expert, P3 Logistic Parks.

P3 declined to comment on the transaction, but market sources said the deal has been signed.

CGL began its first investment sector focus on global logistics and warehouses in 2018, and is owned by three shareholders: CNIC Corporation, China Bocom Insurance Company, and China Nanshan Development Group Incorporation. The Hong-Kong headquartered company employs around 40 professionals across China, Hungary, Poland, and Slovakia.

As previously revealed, P3 Logistic Parks put project “Apex” on the market last year through advisor JLL, with a price of between €400 mln and €500 mln.

Totalling 375,000 m2, the decision to offload the assets came as part of P3's asset recycling programme.

Four assets with a total of 88,000 m2 are located in the Czech Republic, with three assets in France (74,000 m2), two in Germany (47,000 m2), one in the Netherlands with 49,000 m2 of space, one in Spain (58,000 m2), one in Italy (32,000 m2) and one in Poland (26,000 m2).

One market expert said that it offered exposure to a range of logistics sub-sectors, combining a blend of small and big box assets. Another said the sale offers an ‘unusual proposition’, as it involved several countries and only one or two assets per country which made it less attractive for buyers looking to build exposure to specific markets.

Both CGL and shareholder CNIC have been active in European logistics.

In March last year, CGL acquired a portfolio of six distribution parks and Nord Point Office Building in Warsaw from Hine’s Poland Sustainable Income Fund. In January last year, CGL also bought from Invesco Real Estate two build-to-suit distribution centres in Poland totalling 105,000 m2 let to Amazon.

At the time of the deal, Kade Cheng, senior finance manager at CGL, said: ‘With the high-quality acquisition and the expertise in asset management, CGL is poised to continue its rapid growth of profitable investment portfolio across the Europe real estate market.’

In September 2017, CNIC acquired the 240,000 m2 Prologis Park Galanta-Gan in Slovakia.



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