GLP was advised by CBRE Capital Markets and Jones Day. Prologis' in-house legal team was assisted by Linklaters LLP. The transaction is expected to close at the end of February.

Prologis

SAN FRANCISCO—Prologis Inc. and CBRE Global Investment Partners, a division of CBRE Global Investors said Friday they had launched a new development venture in the UK. The 15/85 joint venture, with 85% owned by clients of GIP and the remainder by the San Francisco-based logistics giant, is expected to have a value of approximately £1 billion, or US$1.26 billion.

To be known as Prologis UK Logistics Venture, the JV will pursue a develop-to-own strategy focusing on prime UK markets in the East and West Midlands, London and the South East. UKLV will acquire land, develop buildings and operate and hold logistics properties. It will be seeded with a 7.6-million-square-foot portfolio of stabilized properties, developments in progress and land, with an initial closing of approximately 3.9 million square feet.

“Our customers continue to grow in the UK and this venture helps meet new demand,” says Gary Anderson, CEO, Prologis Europe and Asia. “Current opportunities exceed the capacity of our existing funds and partnering with CBRE Global Investment Partners is an efficient way to match available capital with the breadth of prospects in the UK.”

At CBRE Global Investors, Jeremy Plummer, head of EMEA, notes that Prologis has “a highly experienced team on the ground in the UK with a track record of successfully delivering development projects and managing stabilized assets. They are the ideal partner for this venture and will help meet our clients' demand for high quality logistics investments in the UK.” Prologis currently owns and operates 23 million square feet in 97 buildings in the UK market. The REIT's business strategy in Europe is to hold properties in a series of funds. UKLV is an extension of this strategy and will be the first venture dedicated to the UK market.

GLP was advised by CBRE Capital Markets and Jones Day. Prologis' in-house legal team was assisted by Linklaters LLP. The transaction is expected to close at the end of February.