Prologis has expanded a logistics development partnership in China to US$3.5bn (€3.2bn) and has launched an open-ended fund to own US$1.7bn of assets.
Prologis and HIP China Logistics Investments have committed an additional US$882m of equity which, with leverage, will allow the Prologis China Logistics Venture 3 to develop US$3.5bn of properties in China.
Prologis and HIP will retain their respective ownership percentages in Prologis China Logistics Venture 3.
Prologis said it has formed a new US$1.7bn open-ended Prologis China Core Logistics Fund (PCCLF) to invest in operating logistics properties in Prologis’ target markets in China.
PCCLF has raised US$445m and will acquire the existing RMB12.3bn (€1.57bn) portfolio of assets from Prologis China Logistics Venture 1, which was set up in 2011.
Prologis CIO Eugene F Reilly said: “China represents the largest consumption opportunity in the world, with a sophisticated and rapidly-growing e-commerce market.”
“Our strategy in China is to invest in the highest-quality logistics assets located in the most important consumption markets in the country.”
Prologis managing director and global head of capital raising Martina Malone said: “Investor demand for China logistics is exceptionally strong and we are delighted to be able to offer our institutional investor partners access to this important market opportunity through our new perpetual life fund, PCCLF.”