Prologis raises more capital for China logistics platform

According to a statement, $500 million is being contributed by HIP China Logistics Investment and $88 million by Prologis. HIP is understood to be a subsidiary of sovereign wealth fund Abu Dhabi Investment Authority (ADIA).

The joint venture, Prologis China Logistic Venture, was formed in 2011, with potential investment capacity of $3.5 billion, including $1.75 billion in committed equity.

"The fundamentals of the Chinese logistics sector are very compelling, fueled by domestic consumption and the growth of e-commerce," said Gary Anderson, CEO oof Prologis Europe and Asia. "This incremental equity commitment enables us both to continue to grow our joint business in China."

Spurred by a lack of high-quality supply and rising demand from retail customers, private capital is flooding into China's logistics sector, including sovereign wealth funds and pension funds. They have sought operating partners that bring them exposure to the asset class that goes beyond a blind pool.

Joint ventures and fund management structures give the likes of GLP and Goodman - which works with Canada Pension Plan Investment Board (CPPIB) in China. Dutch pension fund APG invested $650 million in Warburg Pincus-backed e-Shang few months ago.

As of the end of March, Prologis had approximately 574 million square feet properties assets in 21 countries. The company leases those areas to more than 4,700 parties, including manufacturers, retailers, transportation companies and third-party logistics providers.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Real estate
• China
• Logistics
• Transportation
• Real estate
• Abu Dhabi Investment Authority (ADIA)
• Joint Venture