SAN FRANCISCO, Feb. 24, 2017 /PRNewswire/ -- Prologis, Inc.
(NYSE: PLD), the global leader in logistics real estate, and CBRE
Global Investment Partners, a division of CBRE Global Investors,
one of the world's largest real estate investment management firms,
today announced the formation of a new development venture in the
United Kingdom.
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. UKLV
will acquire land, develop buildings and operate and hold logistics
real estate. The venture will be seeded with a 7.6 million square
foot portfolio of stabilized properties, developments in progress
and land, with an initial closing of approximately 3.9m square
feet. UKLV will be structured as a 15/85 joint venture with 15
percent owned by Prologis and 85 percent owned by clients of CBRE
Global Investment Partners, with total expected value of
approximately £1 billion GBP ($1.26B
USD).
"Our customers continue to grow in the UK and this venture helps
meet new demand," said Gary
Anderson, CEO, Prologis Europe and Asia. "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."
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
stabilized 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 currently owns and operates 23 million square feet in
97 buildings in the UK market. The formation of this venture
demonstrates investor confidence in the continuing strength of the
UK logistics property market. Strong demand in the UK for logistics
real estate is driven by consumption, e-commerce and supply chain
modernization. Prologis' business strategy in Europe is to hold properties in a series of
funds. UKLV is an extension of this strategy and will be the first
venture dedicated to the UK market, as Prologis' existing
Pan-European funds already have significant allocations to UK
properties.
The transaction is expected to close at the end of February.
CBRE Global Investment Partners were advised by CBRE Capital
Markets and Jones Day. Prologis'
in-house legal team was assisted by Linklaters LLP.
About Prologis
Prologis, Inc. is the global leader in
logistics real estate with a focus on high-barrier, high-growth
markets. As of December 31, 2016, the
company owned or had investments in, on a wholly owned basis or
through co-investment ventures, properties and development projects
expected to total approximately 676 million square feet (63 million
square meters) in 20 countries. Prologis leases modern distribution
facilities to a diverse base of approximately 5,200 customers
across two major categories: business-to-business and retail/online
fulfillment.
About CBRE Global Investors
CBRE Global Investors is a
global real estate investment management firm with $87.9 billion in assets under management* as of
September 30, 2016. The firm sponsors
investment programs across the risk/return spectrum for investors
worldwide. CBRE Global Investment Partners is a division of CBRE
Global Investors that delivers investment solutions using private
funds, secondaries, co-investments and joint ventures, partnering
with leading operators and fund managers for each strategy.
CBRE Global Investors is an independently operated affiliate of
CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment
sourcing and other resources of the world's premier, full-service
commercial real estate services and investment company for the
benefit of its investors. CBRE Group, Inc. has more than 70,000
employees in more than 400 offices (excluding affiliates)
worldwide. For more information about CBRE Global Investors, please
visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value
of real estate-related assets with respect to which CBRE Global
Investors provides, on a global basis, oversight, investment
management services and other advice, and which generally consist
of investments in real estate; equity in funds and joint ventures;
securities portfolios; operating companies and real estate-related
loans. This AUM is intended principally to reflect the extent of
CBRE Global Investors' presence in the global real estate market,
and its calculation of AUM may differ from the calculations of
other asset managers.
Forward-Looking Statements
The statements in this
document that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements are based on
current expectations, estimates and projections about the industry
and markets in which we operate as well as management's beliefs and
assumptions. Such statements involve uncertainties that could
significantly impact our financial results. Words such as
"expects," "anticipates," "intends," "plans," "believes," "seeks,"
and "estimates", including variations of such words and similar
expressions are intended to identify such forward-looking
statements, which generally are not historical in nature. All
statements that address operating performance, events or
developments that we expect or anticipate will occur in the future
— including statements relating to rent and occupancy growth,
development activity, contribution and disposition activity,
general conditions in the geographic areas where we operate, our
debt, capital structure and financial position, our ability to form
new co-investment ventures and the availability of capital in
existing or new co-investment ventures — are forward-looking
statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Although we believe the
expectations reflected in any forward-looking statements are based
on reasonable assumptions, we can give no assurance that our
expectations will be attained and therefore, actual outcomes and
results may differ materially from what is expressed or forecasted
in such forward-looking statements. Some of the factors that may
affect outcomes and results include, but are not limited to: (i)
national, international, regional and local economic and political
climates, (ii) changes in financial markets, interest rates and
foreign currency exchange rates, (iii) increased or unanticipated
competition for our properties, (iv) risks associated with
acquisitions, dispositions and development of properties, (v)
maintenance of real estate investment trust status, tax structuring
and changes in income tax rates (vi) availability of financing and
capital, the levels of debt that we maintain and our credit
ratings, (vii) risks related to our investments in our
co-investment ventures, including our ability to establish new
co-investment ventures, (viii) risks of doing business
internationally, including currency risks, (ix) environmental
uncertainties, including risks of natural disasters, and (x) those
additional factors discussed in reports filed with the Securities
and Exchange Commission by us under the heading "Risk Factors." We
undertake no duty to update any forward-looking statements
appearing in this document except as may be required by law.
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SOURCE Prologis, Inc.