Prologis and CBRE GIP establish UK logistics joint venture
3 April 2017 by Jordan-Ray Bennis
Prologis Inc, the world’s leader in industrial and logistics real estate, has formed a joint venture with CBRE Global Investment Partners for the acquisition, development and ownership of £1 billion worth of UK logistics property.
The venture, which has been named Prologis UK Logistics Venture (UKLV), will, according to the developer’s press release, focus on ‘prime’ markets in the East and West Midlands, London and the South East of England. The clients of CBRE Global Investment Partners are to own an 85 percent stake in the new venture, while Prologis will take the remaining 15 percent.
With an initial closing of about 3.9 million square feet, the UKLV will be established with a 7.6 million square foot portfolio of stabilised properties, land and developments in progress. The venture covers ‘16 separate parks’ and includes approximately one quarter of Prologis’ UK portfolio, which is said to contain just shy of 100 properties across the nation.
According to the Estates Gazette, the UKLV is the first of Prologis’ investment vehicles to focus solely on the UK market and required the injection of extra capital to ‘build out’ the portfolio. In a statement, Gary Anderson, CEO of Prologis Europe and Asia, indicated that “current opportunities exceed the capacity of [Prologis’] 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.”
Jeremy Plummer, the Head of EMEA for CBRE Global Investors, said that Prologis’ experience and track record for delivering successful development projects make them the ‘ideal’ partner for the venture, explaining that the deal will help meet [their] clients’ demand for high quality logistics investments in the UK.
If you require assistance with the formation of a joint venture or any other commercial property matter, please contact the commercial real estate team on 01206 835316 or click here for more information.
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