Germany is one of the world’s largest and most competitive logistics markets. For P3, it is our ambition to thrive in such a large and attractive space where our customers are active. However, opportunities for land acquisition, development or investment are challenging to come by. Out-of-the-box thinking is required to find the right opportunity, at the right time, for the right price.
Although P3 is known as a pure logistics player, in 2020 we acquired a large retail real estate portfolio in Germany, the so-called “Matrix” deal. This came as a surprise to some in the market, but for P3 it epitomized our entrepreneurial approach. Where some saw retail stores, P3 saw the evolution of the retail supply chain as supporting growth in the e-commerce sector, which is an area that continues to develop as consumers switch from buying ‘some things’ to ‘most things’ online.
The Matrix acquisition was one of the largest real estate investment deals in Europe in 2020. Covering over 650,000 m² of space, the portfolio of 33 retail stores, operated by German wholesaler Metro AG, is superbly located in prime, inner-city locations in many major cities across the country.
This acquisition reflects our forward-looking strategy of making investments that will sustain our future growth and increase our market share in the pan-European market, while strengthening P3’s presence in strategic urban locations. It is also a good example of our great teamwork. Twenty colleagues from the German office and headquarters collaborated on the project for a period of five months. They analyzed data about the customer, Metro AG and each individual store and location, then created a business plan. This was a very complex project with lots of moving parts.
P3 is currently heavily focused upon expanding its business in Germany through investments in portfolios or single assets which have potential for value-add opportunities. With the support of our owner, GIC, we are actively looking for opportunities to strengthen our position as one of Europe’s leading developers and managers of logistics properties.