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3/23/26
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Prologis Inc and GIC, a leading global institutional investor, have formed a $1.6 bil joint venture to develop and own build-to-suit logistics facilities across major U.S. markets. The new venture includes $1.6 bil in combined capital commitments, which includes an initial portfolio of approximately 4.1 msf with additional capacity for future investments.
"Build-to-suit activity continues to be one of the clearest signals of customer conviction across our business," said Daniel S. Letter, chief executive officer of Prologis. "This joint venture with GIC builds on that momentum by pairing our platform and development expertise with a partner that shares our long-term perspective."
The venture combines Prologis' development and operating platform with long-term institutional capital and will operate within Prologis Strategic Capital, the company's asset management business. It is designed to scale with demand as customer commitments are secured.
Prologis is the world's largest logistics real estate company, with 1.3 bsf of properties in 20 countries and $230 bil of assets under management. Build-to-suit development has become a larger share of Prologis' pipeline as customers make long-term commitments to distribution networks and operations. In 2025, the company started $3.1 bil in development projects, with build-to-suit accounting for more than 60% of those starts.
Build-to-suit has proven resilient as customers prioritize certainty around location, functionality and long-term occupancy. Facilities are increasingly designed to support automation, high throughput and proximity to end markets, which makes purpose-built development a practical solution for supply chains that keep evolving.
For institutional investors, build-to-suit also offers a distinct risk profile. These projects are typically pre-leased and built for long-term use, often supported by customers that view the facility as mission-critical to their network.
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