SAN FRANCISCO-As GlobeSt.com reported on January 10, Prologis has entered the J-REIT market, receiving its approval from the Tokyo Stock Exchange. The trust is named Nippon Prologis REIT.
Now comes news that the initial contribution to the REIT has been priced at an impressive $1.9 billion. As we reported at the time, according to the SEC filing, the US firm will retain at least a 15% ownership stake in NPR and contribute 12 of its class-A properties in Japan. This contribution will comprise an initial portfolio of 9.6 million square feet.
Also coming to light is that Prologis’ initial stake in NPR is now 20%.
The original stories appears below:
UPDATE SAN FRANCISCO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE know that more international news has come from locally based Prologis. The second public-market shoe has dropped and locally based international industrial giant Prologis has received approvals for a J-REIT. That approval came from the Tokyo Stock Exchange.
Prologis will be the sole sponsor of Nippon Prologis REIT Inc., trading under the symbol NPR. According to the SEC filing, the US firm will retain at least a 15% ownership stake in NPR and contribute 12 of its Class-A properties in Japan. This contribution will comprise an initial portfolio of 9.6 million square feet.
NPR has exclusive negotiation rights for eight additional properties owned by Prologis, and will receive pipeline, operational and personnel assistance under a sponsor support agreement. In addition, wholly owned subsidiaries of Prologis will serve as NPR’s property and asset managers.
THE ORIGINAL STORY APPEARS BELOW
SAN FRANCISCO-Locally based Prologis Inc. has approved the sponsorship of a Japanese real estate investment trust to serve as a long-term investment vehicle for modern logistics facilities developed by Prologis in Japan.
The J-REIT would be managed by a wholly owned subsidiary of Prologis. Prologis would provide various pipeline and operational support to the J-REIT, including providing exclusive and/or preferential negotiation rights for additional properties developed by Prologis in Japan, according to the statement.
As the sponsor, Prologis will act as the property and asset manager of the J-REIT. Accordingly, the company will receive asset and property management fees, as well as fees arising from the subsequent acquisition and disposition of properties.
Prologis initially expects to contribute 12 of its class-A distribution centers to the J-REIT, according to a prepared company statement. The appraised value of the portfolio is approximately $2.1 billion. The portfolio, with a weighted average age of 3.4 years, totals approximately 10 million square feet and is located principally in its Tokyo and Osaka markets.
“For more than a decade, Prologis has been building the highest-quality assets in Japan,” explains Hamid R. Moghadam, co-CEO and chairman of Prologis. “Demand for class-A facilities continues to grow given the fundamental reconfiguration of Japan’s supply chain. Given our industry-leading development capabilities and our global customer platform, Prologis is uniquely positioned to meet the needs of this important market.”
When GlobeSt.com reached out for further information regarding the J-REIT, a Prologis representative indicated that there is nothing more they could share at this time.