With a strong interest, the Singapore Sovereign Wealth Fund (GIC) continues to invest in the Spanish real estate market. Investments are made through P3 Spain Logistic Parks (hereinafter "P3") is a Spanish real estate investment fund or "socimi". GIC has increased the volume of its portfolio of assets in the logistics and industrial sectors of the country by 2.3 times in 2022 alone.
Today, the total value of GIC assets in Spain has reached 679.4 million euros. This was reported to the CBRE real estate service and investment agency by one of the companies trading on BME Growth.
"P3" is one of the key owners in the market of large logistics centers, for example, warehouses. It started its activity in 2017 and has been actively developing in recent years, reaching the level of such giants as Merlin Properties, Logicor (China Investment Corporation and Blackstone Association), as well as Prologis and Montepino (from Bankinter).
The information above is reflected in the report "The Logistics Property Telescope" prepared by the consulting company EY.
The sharp increase of "P3" in the market over the past year was due to the purchase of a portfolio of five assets from KKR, Round Hill Capital and Pulsar Properties for 107 million euros. The company is 93% controlled by GIC.
The acquired warehouses are located in several municipalities of the province of Guadalajara, such as Torija and Fontanar, as well as in the municipality of Ontigola, in the province of Toledo, and the city of Parets del Valles — in Barcelona.
The total area of all warehouses in the portfolio is 112,000 sq. m. They are leased to companies such as El Corte Inglés and XPO. Last year, "P3" also acquired 88,000 sq. m. of land in one of the most important logistics points in Spain — the municipality of Ilescas in Toledo.
This socimi fund controls 18 logistics and industrial assets covering 666,000 sq. m. of land.
The largest property owned by the company is located in Ilescas, and its total area is 196,000 sq. m. About 55,000 sq. m. of the territory can be developed additionally. The company has other properties in various municipalities of the provinces of Zaragoza, Bilbao, Madrid, Alicante, and Barcelona.
Among the tenants of these areas, there are such companies as Amazon, Auchan, Carrefour, Stellantis, Deutsche Post, DHL, Coca-Cola, and Pepsi.
Over the next few years, GIC is going to invest about 1.5 billion euros in Spain to create a portfolio of assets of 8,000 residential properties for rent. This will be the largest investment by a foreign investor in this type of real estate in Spain to date.
To manage these deposits and assets, the Sovereign Fund has teamed up with the Spanish company Azora, which will also invest as a minority partner. This was announced in February of this year.
In the office segment, GIC is a minority partner of socimi-GMP Properties fund controlled by Montoro Aleman. In the portfolio of this real estate company, there are properties with a total area of 307,000 sq. m. They are estimated at 2.289 billion euros.