GIC sovereign wealth fund and Melcombe Partners have entered into a joint venture to acquire and develop urban logistics assets in Europe.
The venture will reportedly see the groups acquire and develop last-mile distribution centres and urban logistics assets which are “well-located” in Europe’s main gateway cities, with sites predominantly based in the UK, France, Germany, Spain and the Netherlands.
Melcombe said it will source, operate and manage the assets.
Ludovic Bernard, partner at Melcombe Partners, said the venture will “unlock the full potential” of the “fragmented” European urban logistics markets, whilst “capturing the sustained growth of the sector”.
He added that the move will capture the “tightening supply of logistics spaces” in large European cities, “restrictive” land planning rules and the increased “focus on global supply chain” resilience.
The venture will reportedly benefit from Melcombe’s experience within the sector, as well as its “on-the-ground local presence”, which will enable the firm to source, manage, and “add value” to both assets and end-customers.
Lee Kok Sun, chief investment officer of Real Estate at 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.”
He added: “We believe the Venture’s focused strategy, with the management of a skilled partner such as Melcombe, will generate resilient returns in the long run. We look forward to expanding our partnerships and exploring further opportunities in this attractive sector.”