Prologis China Partnership Plans $882M Infusion

The Prologis Asia partnership is poised to invest more than $880 million in China this year.

SAN FRANCISCO—Prologis, Inc. says an additional $882 million in equity has been committed to its Prologis China Logistics Venture, with $750 million contributed by HIP China Logistics Investments Ltd. and $132 million by Prologis. Prologis China Logistics Venture was formed in 2011 with an investment strategy to build, acquire and manage logistics properties in China. This announcement marks the fourth capital commitment received from HIP and Prologis since the fund originated. The venture has committed equity of more than $2.6 billion, of which HIP contributed 85% and Prologis 15%. To date, $93 million of Prologis’ $400 million in committed capital has been deployed. The new capital will fund the venture for the foreseeable future. The company also says it has signed six lease agreements totaling 2.1 million square feet (196,000 square meters) with three new and three repeat customers in the north, west and east regions of China. Five of these occurred in the fourth quarter of 2015 and one lease agreement was signed in the first quarter of 2016. “China continues to provide excellent long-term opportunities for growth in our sector,” said Gary Anderson, CEO, Prologis Europe and Asia. “As the Chinese economy evolves from export to consumer based, we expect to benefit by targeting our investments in the top global commerce centers in the country.” “We have a trusted and growing relationship with HIP China Logistics Investments that continues to yield great benefits for both of us,” said James Green, managing director, Global Client Relations, Prologis. Prologis, Inc. is the global leader in industrial real estate. As of December 31, Prologis owned or had investments in, properties and development projects expected to total approximately 669 million square feet (62 million square meters) in 20 countries.