Prologis expands global footprint with European joint venture

1 hour ago 1

Logistics existent property elephantine Prologis is expanding its planetary footprint, striking a caller pan-European associated task with planetary concern radical La Caisse. The concern underscores a increasing appetite among organization investors for logistics warehouses amid shifting planetary proviso chains.

The caller platform, dubbed Prologis Logistics Investment Venture Europe (PLIVE), volition initially see 1 cardinal euros ($1.17 billion) of logistics properties contributed by some firms. La Caisse volition clasp a 70% involvement successful the venture, leaving Prologis with 30% and the relation of operating partner. Prologis (NYSE: PLD) volition besides supply plus absorption and existent property improvement services arsenic portion of the agreement.

The archetypal portfolio includes astir 844,000 quadrate meters of Class A logistics space, giving the task contiguous standard crossed Europe’s captious logistics corridors successful France, Germany, the Netherlands, Sweden and the United Kingdom.

The PLIVE statement builds connected an existing narration betwixt the 2 firms, which antecedently partnered connected a Brazilian logistics task successful 2019.

“Our concern with La Caisse is built connected years of moving unneurotic and delivering results,” said Ted Eliopoulos, managing manager of strategical superior astatine Prologis, successful a quality release. “Together, we’re expanding that occurrence successful Europe—combining semipermanent superior with our operating level to standard high-quality logistics assets crossed cardinal markets.”

For some companies, the transaction represents a strategical propulsion to capitalize connected semipermanent marketplace fundamentals. Companies are actively reshaping their proviso chains and moving accumulation person to home—trends that necessitate strategically located warehouse space.

The transaction is expected to adjacent successful the 2nd quarter. Goldman Sachs (NYSE: GS) is acting arsenic exclusive fiscal advisor to La Caisse.

“We person seen Prologis’ best-in-class capabilities to thrust returns firsthand done our concern successful Brazil, and we are gathering connected our combined strengths to make a genuinely consolidated pan-European platform,” said Rana Ghorayeb, caput of existent property astatine La Caisse. “This associated task brings unneurotic Prologis’ heavy hands-on operational expertise and our imaginativeness to actively alteration assets to heighten semipermanent value.”

Last month, Prologis announced the enactment of a $1.6 cardinal associated task with organization capitalist GIC. The GIC superior is earmarked for the U.S. market, specifically backing 4.1 cardinal quadrate feet of build-to-suit logistics space.

More FreightWaves articles by Todd Maiden: