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Prologis, a leading company in logistics real estate, and GIC, a global institutional investor, have launched a joint venture worth USD 1.6 billion. The aim of this partnership is the development and ownership of customized logistics properties in key markets in the United States.
Capital Commitment and Project Scope
The new joint venture includes a combined capital commitment of USD 1.6 billion, encompassing an initial portfolio of approximately 380,000 square meters. Additionally, there is potential for future investments. Prologis manages properties worldwide with a total area of 120,775 in 20 countries and has assets valued at USD 230 billion.
Daniel S. Letter, CEO of Prologis, stated: “Activity in the build-to-suit sector is a clear signal of our customers‘ confidence in our business.” He emphasized that the partnership with GIC enhances existing momentum by combining Prologis’s development and operational expertise with GIC’s long-term capital.
Market Development and Demand
The demand for customized logistics properties has increased in recent years as companies commit to long-term obligations for their distribution networks. In 2025, Prologis launched projects worth USD 3.1 billion, with more than 60% of these projects located in the build-to-suit sector. This type of development provides customers with security regarding location, functionality, and long-term use.
Goh Chin Kiong, Chief Investment Officer of GIC, commented on market conditions: “With strong growth in e-commerce, the reshoring of supply chains, and stable consumer behavior, the industrial sector remains a long-term investment theme in North America.” He highlighted that the partnership with Prologis is based on a shared conviction for the sector.
Risks and Opportunities for Investors
For institutional investors, build-to-suit development offers a specific risk profile. These projects are typically pre-leased and designed for long-term use, often supported by customers who view the respective property as critical to their network. The joint venture strengthens Prologis Strategic Capital as a growth platform and enables the company to invest alongside institutional partners.
Prologis Strategic Capital manages assets worth USD 102 billion, including USD 67 billion from third-party investors. The partnership with GIC is seen as a strategic step to integrate Prologis’s development, operational, and customer capabilities into the collaboration.
