TPG and Ivanhoe Cambridge have kicked off the sale of their European logistics platform Point Park Properties.
The sale is an opportunity for a new entrant to gain a substantial market share in the maturing logistics sector.
P3 has a portfolio valued at more than €2.5bn (£2.1bn), made up of 35.5m sq ft of sheds and a development pipeline totalling 15m sq ft.
Headed by chief executive Ian Worboys and headquartered in Prague, the company owns 163 warehouses across Bulgaria, the Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Slovakia and Spain.
Eastdil Secured has been appointed to approach a select group of institutional investors and sovereign wealth funds, with a focus on Asian investors. A prospective IPO of the company had been anticipated as an exit, but a direct sale is expected to be quicker, cheaper and more executable.
P3 is not being offered to established players in the sector, such as Blackstone’s Logicor, Brookfield’s IDI Gazeley, SEGRO or Prologis, as the sellers hope to achieve a higher price for the business from an investor that would value an existing management platform.
The sale is possible because of a refinancing of P3 nearing its conclusion. P3 is refinancing €1.4bn of debt, with Morgan Stanley providing €585m secured against its €900m of assets in western and southern Europe. Eastdil Secured, KPMG and Freshfields are advising on the refinancing.
The company’s portfolio is mainly in eastern Europe but has been steadily expanding westward. Speaking to Estates Gazette at MIPIM in March, Worboys said he had ambitions to break into the UK.
From March 2016: P3 considers entering European markets>>
Any buyer could try to further consolidate the sector, with opportunistic investor Brookfield expected to sell P3 rival IDI Gazeley in the next couple of years.
TPG and Ivanhoe have expanded P3 dramatically since they bought it in 2013 with only 48 assets totalling 1.5m sq ft valued at around €760m. The deal followed an aborted IPO by its previous Bahraini owner Arcapita in 2012.
The timing of the sale means it will most likely rival Blackstone’s Logicor for the attention of investors, with advisers expected to be appointed to undertake a twin-track IPO and direct sale process for the company in the coming months. Logicor now owns 140m sq ft of property valued at €11bn and if floated would have a market capitalisation of €6bn.
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