Prologis expands global footprint with European joint venture

Warehouse operator inks second major JV deal this year

Prologis announced a $1.6 billion joint venture with institutional investor GIC last month. (Photo: Jim Allen/FreightWaves)

Logistics real estate giant Prologis is expanding its global footprint, striking a new pan-European joint venture with global investment group La Caisse. The partnership underscores a growing appetite among institutional investors for logistics warehouses amid shifting global supply chains.

The new platform, dubbed Prologis Logistics Investment Venture Europe (PLIVE), will initially include 1 billion euros ($1.17 billion) of logistics properties contributed by both firms. La Caisse will hold a 70% stake in the venture, leaving Prologis with 30% and the role of operating partner. Prologis (NYSE: PLD) will also provide asset management and real estate development services as part of the agreement.

The initial portfolio includes approximately 844,000 square meters of Class A logistics space, giving the venture immediate scale across Europe’s critical logistics corridors in France, Germany, the Netherlands, Sweden and the United Kingdom.

The PLIVE agreement builds on an existing relationship between the two firms, which previously partnered on a Brazilian logistics venture in 2019.

“Our partnership with La Caisse is built on years of working together and delivering results,” said Ted Eliopoulos, managing director of strategic capital at Prologis, in a news release. “Together, we’re expanding that success in Europe—combining long-term capital with our operating platform to scale high-quality logistics assets across key markets.”

For both companies, the transaction represents a strategic push to capitalize on long-term market fundamentals. Companies are actively reshaping their supply chains and moving production closer to home—trends that require strategically located warehouse space.

The transaction is expected to close in the second quarter. Goldman Sachs (NYSE: GS) is acting as exclusive financial adviser to La Caisse.

“We have seen Prologis’ best-in-class capabilities to drive returns firsthand through our partnership in Brazil, and we are building on our combined strengths to create a truly consolidated pan-European platform,” said Rana Ghorayeb, head of real estate at La Caisse. “This joint venture brings together Prologis’ deep hands-on operational expertise and our vision to actively transform assets to enhance long-term value.”

Last month, Prologis announced the formation of a $1.6 billion joint venture with institutional investor GIC. The GIC capital is earmarked for the U.S. market, specifically funding 4.1 million square feet of build-to-suit logistics space.

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.