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Prologis to build 7.6m sq ft of warehousing with CBRE

Prologis to build 7.6m sq ft of warehousing with CBRE

Prologis is to create a new 7.6m sq ft warehouse building programme in partnership with investment managers CBRE Global Investment Partners.

The project provides an incentive for more warehouse buildings as Prologis put newly built warehouses into the fund, to provide longterm income .

The venture, called Prologis UK Logistics Venture (UKLV), will pursue a develop-to-own strategy focusing on prime UK markets in the East and West Midlands, London and the South East. UKLV will acquire land, develop buildings and operate and hold logistics real estate.

The venture will be seeded with a 7.6 million square foot portfolio of stabilized properties, developments in progress and land, with an initial closing of approximately 3.9m square feet.

UKLV will be structured as a 15/85 joint venture with 15 percent owned by Prologis and 85 percent owned by clients of CBRE Global Investment Partners, with total expected value of approximately £1 billion GBP ($1.25B USD).

Gary Anderson, chief executive at Prologis Europe and Asia, said: “Current opportunities exceed the capacity of our existing funds and partnering with CBRE Global Investment Partners is an efficient way to match available capital with the breadth of prospects in the UK.”

The transaction is expected to close at the end of February.

CBRE Global Investment Partners were advised by CBRE Capital Markets and Jones Day. Prologis’ in-house legal team was assisted by Linklaters LLP.

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