01 October 2014
Madrid, 1 October 2014 – The real estate group Gmp and an affiliate of GIC, Singapore’s sovereign wealth fund, have reached an agreement through which GIC will acquire about a 30% minority shareholding in the Spanish real estate company. GIC’s investment of more than 200 million euros will enable the Gmp to strengthen its position as a major investor in the office and business park segment in Madrid and Barcelona.
According to Francisco Montoro, CEO of Gmp “We are very pleased to have a strategic partnership with a truly global, experienced and reputable long-term investor such as GIC. We believe we are aligned in our objectives of disciplined capital deployment to continually add value to the portfolio. The funds will be used to foster growth through new investments, refurbishment and development projects. These will strengthen Gmp’s position as a specialized office property owner.”
According to Chris Morrish, Regional Head of Europe, GIC Real Estate, “GIC’s investment in Gmp demonstrates our belief in Spain’s office sector and our confidence in the quality of Gmp’s portfolio and management team. As a long-term value investor, this is a good opportunity for GIC to gain access to a large and diversified office portfolio in Madrid and leverage on Gmp’s local expertise to grow our exposure.”
The transaction has been advised by JP Morgan, Garrigues (Gmp), Clifford Chance (GIC) and CB Richard Ellis.
Future plans: Growth and strength
Following GIC’s investment, Gmp will embark on a Strategic Plan which focuses on creating value through three main pillars:
- Selective investment in office buildings aiming to leverage the growth potential in the market.
- Active management of the existing Gmp portfolio, encompassing refurbishment work, repositioning and improvements in building sustainability and energy efficiency.
- Disposal of non-strategic assets with a view to recycle capital in strategic properties with greater value creation potential.
In line with this Strategic Plan, Gmp acquired the former headquarters of Altadis on 15 July, an office building at 10 Eloy Gonzalo Street, Madrid, with a gross leasable area of more than 13,000 m², on which full refurbishment work has already started.
Established in 1979, Gmp is one of the leading unlisted property-owning real estate groups in Spain.
Its strong property-owning focus has enabled it to consolidate a solid position within the Spanish real estate market as a specialist in developing, investing in and managing property assets as owner and for third parties, with particular emphasis on premium offices and business parks in Madrid. The group currently owns more than 410,000 m² of space in operation, which includes 4,200 parking spaces, and a land bank for new projects, with a buildable area of 86,601 m².
Apart from its extensive experience in the promotion and management of its own assets, Gmp has managed over 300,000 m² of buildable space for third parties during the last ten years.
Gmp holds a stable and diversified portfolio of clients from 30 different sectors. Many of its clients are leading multinational companies, key drivers in the global economy, which have chosen buildings owned by Gmp as the headquarters of their operations in Spain. Its property portfolio includes buildings such as Génova 27, Hermosilla 3, Castellana 81, Alcalá 16 and business parks such as Parque Norte, Castellana Norte and Iberia Mart.
GIC is a leading global investment firm with well over US$100 billion in assets under management. Established in 1981, the firm manages Singapore’s foreign reserves and is uniquely positioned for long-term and flexible investments across a wide range of asset classes, including public equities, fixed income, real estate, and private equity. In real estate, GIC manages a diversified global portfolio comprising direct assets, substantial stakes in operating platforms, fund investments and minority positions in leading listed real estate companies.