Singapore sovereign wealth fund GIC has entered into a joint venture with logistics real estate specialist Prologis to invest US$1.6bn (€1.39bn) in the US.
The joint venture will develop and own build-to-suit logistics facilities across major US markets and includes US$1.6bn in combined capital commitments, including an initial portfolio of approximately 4.1m sqft which has “additional capacity for future investments”.
Prologis said build-to-suit development had become a larger share of its pipeline as tenants make long-term commitments to distribution networks and operations. In 2025, the company started $3.1bn in development projects, with build-to-suit accounting for more than 60% of those starts.
Build-to-suit has proven resilient as customers prioritise certainty around location, functionality and long-term occupancy, Prologis said. 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, it added.
Daniel S Letter, chief executive officer of Prologis, said: ”Build-to-suit activity continues to be one of the clearest signals of customer conviction across our business. 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.”
Build-to-suit also offers a distinct risk profile for institutional investors, Prologis said, with projects typically pre-leased and built for long-term, mission-critical use.
Goh Chin Kiong, chief investment officer of real estate at GIC, said: “With strong e-commerce growth, the reshoring of supply chains and resilient consumer spending, industrial remains a strong long-term investment theme in North America.
“Our partnership with Prologis, a best-in-class operator, reflects our shared conviction in the sector and likeminded approach to deploying capital with discipline across cycles.”
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