CBRE Global Investment Partners and Prologis have formed a joint venture to invest £1bn (€1.18bn) in UK logistics real estate.

CBRE Global Investment Partners, a division of CBRE Global Investors, will own 85% of the joint venture on behalf of institutional investors, and listed logistics specialist Prologis will own the rest.

The venture, 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 assets.

The venture will be seeded with a 7.6m sqft portfolio of stabilised properties, developments in progress and land, with an initial closing of approximately 3.9m sqft.

Jeremy Plummer, head of EMEA for CBRE Global Investors, said: “Prologis has a highly experienced team on the ground in the UK with a track record of successfully delivering development projects and managing stabilised assets.

“They are the ideal partner for this venture and will help meet our clients’ demand for high quality logistics investments in the UK.”

Prologis, which owns and operates 23m sqft in 97 buildings in the UK market is its first venture dedicated to the UK market. Its existing pan-European funds already have significant holdings in the UK.

Gary Anderson, CEO of Prologis Europe andAsia, said: “Our customers continue to grow in the UK and this venture helps meet new demand.

“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.”