TPG and Ivanhoé Cambridge Acquire Europe’s P3

U.S. private equity firm TPG and Canadian group Ivanhoé Cambridge have teamed up to complete another major European real estate transaction.
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Prague, Czech Republic—U.S. private equity firm TPG and Canadian group Ivanhoé Cambridge have teamed up to complete another major European real estate transaction. In a joint statement, the companies have announced the acquisition of European logistics firm PointPark Properties (P3) from Bahraini investment company Arcapita. Financial details have not been disclosed.

As part of the transaction, the investors will also commit additional capital to strengthen P3′s balance sheet and to provide support for future growth.

Based in Prague, P3 is a specialist investor, developer and asset manager of warehouse properties in 12 European countries, including the Czech Republic, France, Germany, Italy, the Netherlands, Poland, Slovakia and Spain. The company’s portfolio encompasses 48 warehouses totaling approximately 15.7 million square feet, as well as a land bank, which allows for the development of more than 6.4 million square feet of warehouse space.

“After five years working with Arcapita, who successfully assembled this portfolio, we look forward to TPG and Ivanhoé Cambridge becoming long term investors in P3. TPG and Ivanhoé Cambridge were attracted to P3 by our warehouse expertise, cohesive management platform and high quality, geographically diverse portfolio. The new investment will allow us to accelerate the expansion of our activities in our existing and new markets. We are now in a position with our current land bank to build upon our established customer base. P3 will also look to enhance its existing portfolio by acquiring quality income producing warehouses in key logistic locations,” Ian Worboys, CEO of P3, said in a news release.

Commenting on the deal, Meka Brunel, executive vice president, Europe, at Ivanhoé Cambridge, says: “This strategic investment represents a unique opportunity to acquire a large and independent logistics platform in Europe. With assets strategically positioned along major air, sea and rail transport routes, P3 offers a very attractive growth potential, and will contribute to the diversification of our real estate portfolio. The strong growth trend in e-commerce can only benefit the logistics industry in the long term and offers an opportunity to generate excellent returns from changing consumer lifestyles in Europe.”

“P3 is a leading, full-service logistics platform with a high-quality portfolio of warehouse assets located in Europe’s core distribution hubs. P3 is well-positioned to benefit from the positive macro trends driving the current growth in occupational demand for European logistics space,” adds TPG Partner Anand Tejani. “We are delighted to be working with P3’s high-caliber management team and with Ivanhoé Cambridge to support P3’s next phase of growth including new portfolio acquisitions and development projects.”

According to Bloomberg, P3’s former owner Arcapita filed for Chapter 11 protection in New York in 2012 and came out of bankruptcy in September after having obtained a $350 million loan from a Goldman Sachs Group Inc. affiliate. The company is headquartered in Bahrain and has offices in Atlanta, London and Singapore.

At the beginning of the year, the TPG—Ivanhoé Cambridge duo has also acquired the 351,000-square-foot Woolgate Exchange office building in London for £265 million (equivalent to approximately $417 million at the January exchange rate).