Global logistics real estate player Prologis and CBRE Global Investment Partners - a division of CBRE Global Investors - have formed a new development venture in the UK.
The venture, called 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, according to the two companies. UKLV will acquire land, develop buildings and operate and hold logistics real estate.
'Our customers continue to grow in the UK and this venture helps meet new demand,' commented Gary Anderson, CEO, Prologis Europe and Asia (pictured). '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.'
UKLV will be structured as a 15/85 joint venture that is 15% owned by Prologis and 85% owned by clients of CBRE GIP, with a total expected value of approximately £1 bn (€1.2 bn).
The venture will be seeded with a 7.6 million ft2 (2.3 million m2) portfolio of stabilised properties, developments in progress and land, with an initial closing of approximately 3.9 million ft2.
'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,' said Jeremy Plummer, head of EMEA for CBRE Global Investors. 'They are the ideal partner for this venture and will help meet our clients' demand for high quality logistics investments in the UK.'
Prologis currently owns and operates 23 million ft2 in 97 buildings in the UK market, although UKLV will be its first dedicated UK venture.
The transaction is expected to close at the end of February.
CBRE GIP was advised by CBRE Capital Markets and Jones Day. Prologis' in-house legal team was assisted by Linklaters.
