Prologis launches $1.7b China logistics fund

The China Core Logistics Fund is an open-ended, evergreen vehicle. It has initially pooled about $445 million in capital commitments along with 2 million square meters of existing portfolio assets from the Prologis China Logistics Venture (PCLV), a private equity fund set up by Prologis and HIP China Logistics Investments, a subsidiary of Abu Dhabi Investment Authority (ADIA).

The launch coincides with an expansion of the PCLV agenda, which includes building, acquiring and managing logistics properties in China. Prologis and HIP have committed a combined $882 million of equity to PCLV, bringing the program’s investment capacity to $3.5 billion. This compares to $2.6 billion in 2014 following a previous $882 million investment.

"China represents the largest consumption opportunity in the world, with a sophisticated and rapidly-growing e-commerce market," Eugene Reilly, CIO at Prologis, said in a statement. "Our strategy in China is to invest in the highest-quality logistics assets located in the most important consumption markets in the country."

Globally Prologis claims $111 billion of assets under management, including $58 billion across nine co-investment ventures. Its two main operational areas are B2B services and retail and online fulfillment. The China footprint includes warehousing operations across Shanghai, Beijing, Shenzhen, and Chengdu.

Investment interest in Chinese logistics is underpinned by strong growth in domestic consumerism, especially in online shopping. Earlier this week, GLP, a PE-backed logistics operator based in Singapore, advanced an expansion China strategy with the launch of an approximately $2.1 billion country fund.

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• Topics
• Greater China
• Real estate
• Fundraising
• China
• Abu Dhabi Investment Authority (ADIA)
• Logistics