GIC, Singapore’s sovereign wealth fund, and Melcombe Partners, a European urban logistics investment manager, have agreed to form a JV to acquire and develop urban logistics properties in Europe.
The JV will acquire and develop last-mile distribution centres and urban logistics assets in Europe’s main gateway cities, with a focus on the UK, France, Germany, Spain and the Netherlands. Melcombe will source, operate and manage the assets.
Ludovic Bernard, Partner, Melcombe Partners, spoke of the company’s excitement at forming a JV with one of the world’s leading sovereign wealth funds.
2020 has been a strong year for last mile logistics deals, with COVID lockdowns driving a spike in online shopping.
P3 Logistics Parks, themselves wholly owned by GIC, acquired a portfolio 33 retail logistics assets in Germany at the beginning of November. And just last week, Blackstone Group spent $1.1bn acquiring a 70% stake in Guangzhou’s largest logistics park.
Mr Bernard added that the venture would aim to unlock the full potential of a fragmented European urban logistics markets and capture the sustained growth of a sector underpinned by spiking e-commerce activity, tightening supply of urban logistics space, restrictive land planning rules and increased focus on global supply chain resilience.
Lee Kok Sun, Chief Investment Officer of Real Estate, GIC, said, “This venture reflects GIC’s continued confidence in the long-term potential of the logistics sector. The urban logistics sub-market will benefit from positive fundamentals, reinforced by increasing occupier demand due to accelerating e-commerce adoption and changing supply chain management strategies.”