Prologis, HIP invest US$882m into Chinese logistics venture

Logistics property specialist Prologis and HIP China Logistics Investments have committed a further US$882m to their latest Chinese logistics joint venture, increasing its development capacity to more than US$3.5bn.

Prologis and HIP, which is said to be a subsidiary of sovereign wealth fund Abu Dhabi Investment Authority, have teamed up on Chinese logistics-focused ventures since 2011.

Prologis also raised about US$445m for its new US$1.7bn open-ended Prologis China Core Logistics fund (PCCLF), the firm announced.

The fund will acquire the existing portfolio of assets from Prologis China Logistics Venture 1, comprising 2m sq.m. of space worth about US$1.7bn in total.

“China represents the largest consumption opportunity in the world, with a sophisticated and rapidly-growing e-commerce market,” said Prologis chief investment officer Eugene F. Reilly.

“Our strategy in China is to invest in the highest-quality logistics assets located in the most important consumption markets in the country.”

HIP will continue as a major investor in PCCLF, while Prologis will maintain its ownership stake.

Prologis and HIP formed their first joint venture, Prologis China Logistics Venture 1, in March 2011.

The partners then invested US$588m into the first fund in 2014 and committed a further US$882m in 2016.

The two parties launched their second venture with $588m in equity commitments in 2013.

The joint investment comes after GLP launched its own new RMB15bn (US$2.1bn) Chinese logistics fund, backed by domestic institutional investors, earlier this week.

Prologis owns US$111bn in assets under management, including US$58bn across its nine co-investment ventures.

Related stories 

GLP launches new US$2.1bn Chinese logistics fund

Allianz commits US$600m to GLP’s China, Japan logistics funds

GIC, GDS team up for Chinese data centre venture

For more Asia Pacific property news and intelligence, subscribe to our weekly newsletter or follow APAC Real Estate on FacebookTwitter and LinkedIn.