In Q4 of 2008, ProLogis executives discussed their plan to reduce risk in the Japan portfolio by entering into alliance agreements and joint venture partnerships. The company hoped to co-own assets while retaining the management and leasing responsibilities.
The Japan Logistics Fund is looking to expand its portfolio and has opted to partner with ProLogis on a number of completed and under-development projects. The exact projects the companies will joint venture on have yet to be determined. The decision will be made after a formal agreement has been reached between the companies.
According to ProLogis executives, Japan Logistics Fund will have the opportunity to invest in additional properties over time and there is no exclusivity agreement between the two firms.
In the current deal, ProLogis will retain the leasing and management rights of the properties and therefore all the earning management fees related to that.
ProLogis is also in talks with Mitsui & Co. Group about a possible joint venture and is actively pursuing other third-party capital sources in order to expand its holdings here.
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