Prologis, Inc. , the global leader in logistics real estate, announced the expansion of its development venture in China and increased its development capacity to more than US$3.5 billion. Prologis also announced the formation of its new US$1.7 billion open-ended Prologis China Core Logistics Fund.
As part of the expansion of Prologis China Logistics Venture 3, HIP China Logistics Investments Limited and Prologis have committed an additional US$882 million of equity which, with leverage, will allow the venture to develop approximately US$3.5 billion of logistics properties in China. Prologis and HIP will retain their respective ownership percentages in Prologis China Logistics Venture 3.
The company also announced the formation of PCCLF, a perpetual life fund which will invest in operating logistics properties in Prologis’ target markets in China. The Fund has raised RMB 3.1 billion (approx. US$445 million) and will acquire the existing portfolio of assets from Prologis China Logistics Venture 1 of approximately 2.0 million square meters (approx. 22.0 million square feet) with a fair value of approximately RMB 12.3 billion (approx. US$1.7 billion). Prologis will maintain its ownership percentage and HIP will continue to be a major investor in PCCLF.
“China represents the largest consumption opportunity in the world, with a sophisticated and rapidly-growing e-commerce market,” said Prologis chief investment officer Eugene F. Reilly. “Our strategy in China is to invest in the highest-quality logistics assets located in the most important consumption markets in the country.”
“Investor demand for China logistics is exceptionally strong and we are delighted to be able to offer our institutional investor partners access to this important market opportunity through our new perpetual life fund, PCCLF,” said Prologis managing director, global head of capital raising Martina Malone.
As of September 30, 2019, Prologis had US$111 billion of assets under management, including US$58 billion in its nine co-investment ventures globally.
Source : Company