• ITVI.USA
    10,751.450
    -50.420
    -0.5%
  • OTRI.USA
    15.130
    0.000
    0%
  • OTVI.USA
    10,743.060
    -48.100
    -0.4%
  • TLT.USA
    2.800
    -0.070
    -2.4%
  • TSTOPVRPM.ATLPHL
    2.630
    0.110
    4.4%
  • TSTOPVRPM.CHIATL
    1.910
    0.050
    2.7%
  • TSTOPVRPM.DALLAX
    1.250
    -0.060
    -4.6%
  • TSTOPVRPM.LAXDAL
    2.390
    0.130
    5.8%
  • TSTOPVRPM.PHLCHI
    1.330
    0.070
    5.6%
  • TSTOPVRPM.LAXSEA
    2.750
    0.020
    0.7%
  • WAIT.USA
    103.000
    -17.000
    -14.2%
  • ITVI.USA
    10,751.450
    -50.420
    -0.5%
  • OTRI.USA
    15.130
    0.000
    0%
  • OTVI.USA
    10,743.060
    -48.100
    -0.4%
  • TLT.USA
    2.800
    -0.070
    -2.4%
  • TSTOPVRPM.ATLPHL
    2.630
    0.110
    4.4%
  • TSTOPVRPM.CHIATL
    1.910
    0.050
    2.7%
  • TSTOPVRPM.DALLAX
    1.250
    -0.060
    -4.6%
  • TSTOPVRPM.LAXDAL
    2.390
    0.130
    5.8%
  • TSTOPVRPM.PHLCHI
    1.330
    0.070
    5.6%
  • TSTOPVRPM.LAXSEA
    2.750
    0.020
    0.7%
  • WAIT.USA
    103.000
    -17.000
    -14.2%
Asia-PacificLogisticsNewsWarehouse

Prologis expands in China with multibillion-dollar investments

Logistics real estate giant Prologis Inc. (NYSE: PLD) said it will develop properties in China valued at $3.5 billion, buy an existing portfolio of Chinese logistics assets with a value of $1.7 billion in a multipronged expansion into the fast-growing Chinese logistics warehouse and distribution market.

Under the program, Prologis and HIP China Logistics Investments Ltd., which already have partnerships in other ventures, will spend $882 million to develop the $3.5 billion property slate. Prologis has also formed a fund called PCCLF that will acquire the 22 million-square-foot portfolio with the $1.7 billion market value.

“China represents the largest consumption opportunity in the world, with a sophisticated and rapidly growing e-commerce market,” said Eugene Prologis chief investment officer Eugene F. Reilly. “Our strategy in China is to invest in the highest-quality logistics assets located in the most important consumption markets in the country.” 

Investor demand for China logistics assets is “exceptionally strong at this time,” added Martina Malone, the company’s managing director, global head of capital raising.

Prologis, the world’s largest developer, owner and operator of logistics real estate, has 87 million square feet in Asia, which accounts for about 12% of its global footprint. It controls 225 buildings in Asia. As of the end of September, Prologis had $111 billion of assets under management. More than half of those assets are in nine global co-investment ventures.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.
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