GIC In Box Seat For Ireland's Biggest-Ever Industrial And Logistics Deal
GIC, working with operating partner Valor Real Estate, is in exclusive talks to buy Horizon Logistics Park, a large industrial campus on the outskirts of Dublin, from Henderson Park for about €500M.
Green Street News reported the potential purchase price would be the largest logistics deal in Ireland’s history and would equate to a net initial yield in the region of 5% for the income-producing component of the sale, although the site also includes significant development opportunities.
Henderson Park was prepared initially for a sale or recapitalisation, with Eastdil Secured and JLL mandated in August to line up options for Horizon Logistics Park.
GIC fought off KKR and Aermont Capital to land the trophy campus, and the sale attracted a wide array of interest. Other investors that showed initial interest included EQT, Deka Immobilien and Kennedy Wilson.
Alongside the 1.7M SF of constructed logistics space at Horizon, there is 2M SF of consented development land that is capable of offering built-to-suit units of 20K SF to 1M SF.
Horizon Logistics Park comprises around 300 acres of zoned industrial land where several distribution facilities have already been developed and are occupied.
Henderson Park assumed ownership of Horizon when it bought Green REIT in 2019, and it has expanded and developed the site, adding around 1M SF during its tenure to create approximately 300 acres of zoned industrial land, with tenants including DHL, Kuehne+Nagel, Bunzl and Fastway.
Along with Henderson Park, EQT Real Estate, Relm Finance and Iput Real Estate all have major portfolios and assets for sale, with the latter also pushing ahead with its own huge development, with more than €800M of industrial and logistics space set to change hands in the coming months.
EQT Real Estate has put a €240M logistics portfolio up for sale, with Eastdil Secured and JLL mandated to sell the properties, which EQT manages on behalf of Singapore’s sovereign wealth fund, GIC. It was acquired in 2020 from Morgan Stanley Investment Management.
In addition, Iput has initiated a €55M logistics sale, with Savills mandated to sell the North Gate portfolio, which includes 12 industrial assets. The guide price equates to a net initial yield of around 5.5%, based on annual income from the portfolio of €3.2M.
Earlier this year, Iput Real Estate pledged €115M in capital and its logistics land bank to the subfund Iput Nexus Logistics Fund, combined with an equity investment of €115M from CBRE Investment Management’s indirect private real estate strategies platform and the Ireland Strategic Investment Fund.
“The latest data underlines how balanced the Dublin industrial market has become,” Savills Ireland Director of Research John Ring said. “We’re seeing robust occupier demand alongside a healthy pipeline of new completions, which is helping to prevent excessive upward pressure on rents.”
