Prologis, Ivanhoé Cambridge Announce $890M Brazilian JV
At closing, the venture will acquire an initial portfolio of assets of approximately 6.9 million square feet of operating properties and 371 acres of land from Prologis' balance sheet with a commitment to build out the existing land bank.
SAN FRANCISCO—Prologis, Inc. and Ivanhoé Cambridge report they have agreed to form a 20/80 logistics real estate joint venture in Brazil valued at $890 million.
The entity— Prologis Brazil Logistics Venture—will develop and operate logistics real estate in Sao Paulo and Rio de Janeiro, Brazil. At closing, the venture will acquire an initial portfolio of assets of approximately 6.9 million square feet of operating properties and 371 acres of land from Prologis’ balance sheet with a commitment to build out the existing land bank.
“We are very excited to continue building our highly successful Brazil business with Ivanhoé Cambridge, a new strategic partner that brings extensive experience in Brazil specifically and in global real estate generally,” says Gene Reilly, Prologis’ CEO of the Americas. “With this venture, we are increasingly well-positioned to meet the growing demand for modern logistics space—as more than 40% of the country’s GDP is located in Sao Paulo and Rio de Janeiro.”
Rita-Rose Gagné, president, growth markets for Montreal-based Ivanhoé Cambridge adds, “We have been investing in Brazil since 2006 and continue to do so with a long-term view. The quality of our partners and assets are key. We are delighted to partner with Prologis, the leading global logistics company, to invest in the growing logistics sector of Brazil. This venture aligns with our global approach to significantly increase our investments in the industrial and logistics space in key markets around the world.”
As of Sept. 30, 2018, San Francisco-based Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects that were expected to total approximately 771 million square feet in 19 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,500 customers across two major categories: business-to-business and retail/online fulfillment.
Ivanhoé Cambridge, through subsidiaries and partnerships, holds interests in more than 1,000 buildings, primarily in the residential, office, retail, industrial and logistics sectors. Ivanhoé Cambridge is a real estate subsidiary of the Caisse de dépôt et placement du Québec, one of Canada’s leading institutional fund managers.