TPG, Ivanhoé Cambridge JV Acquires Point Park Properties
- Oct 23, 2013
U.S. private equity firm TPG and Canadian group Ivanhoé Cambridge have teamed up for the purchase of European logistics firm PointPark Properties (P3) from Bahraini investment company Arcapita. Terms were not 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.
“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,” said Ian Worboys, CEO of P3, in a news release.
“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,” Worboys added. “P3 will also look to enhance its existing portfolio by acquiring quality income producing warehouses in key logistic locations.”
Based in Prague, P3 is an, 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 that allows for the development of more than 6.4 million square feet of warehouse space.
Commenting on the deal, Meka Brunel, Ivanhoé Cambridge’s executive vice president for Europe, said: “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.”
According to Bloomberg, P3’s former owner, Arcapita, filed for Chapter 11 protection in New York in 2012. The company emerged from bankruptcy last month after obtaining 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.
In January, the TPG – Ivanhoé Cambridge joint venture acquired the 351,000-square-foot Woolgate Exchange office building in London for £265 million, or about $417 million.