ProLogis Invests $100M in Two China Projects

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SHANGHAI-Industrial development giant ProLogis continues to quickly ramp up its commercial real estate platform in China, unveiling a pair of new construction projects that will yield nearly 1.7 million sf of modern distribution space. Active in the Chinese market since arriving there in 2004, ProLogis already has 15.5 million sf under management or in the pipeline, and company officials say the new additions will further enhance its footprint in the country.

In the latest ventures, ProLogis is constructing a pair of two-story buildings at ProLogis Park Hongqiao West near the Shanghai Hongqiao International Airport, one of China’s main air cargo operations. Having acquired the property earlier this year, ProLogis is spending $52 million to expand the complex by another 920,000 sf. In Shenzhen, the REIT has launched the first phase of construction at ProLogis Park Yantian, located near Yantian Port. That $48-million investment will produce a pair of three-story facilities comprising 750,000 sf. In both cases, ProLogis made its choice of site selection prudently based on transit capabilities, according to Ming Mei, the company’s president for China.