Prologis invests in new assets
Blackstone Investment Corporation has signed a USD 3.1 billion deal with US-based Prologis. The agreement covers the sale of 1.3 million square metres of property. The deal is important for Prologis as it expands its presence in Atlanta and California, considered promising markets.
While demand for warehouse space has remained strong since the pandemic, other commercial real estate has fallen on hard times. Rising interest rates have limited financing options for many developers and space owners. Understanding all the risks involved in commercial property, Blackstone prefers to eliminate some assets. This frees up cash for other projects. At the same time, developer Prologis is taking a long-term view and using the market downturn to expand its portfolio.
Overview of Prologis activities
Prologis is an owner, operator and developer of commercial property. The company owns all or part of its assets in 21 countries. It is a member of the S&P 500 Index and the Fortune 500 ranking, and in 2012 was ranked second among the top 25 developers in the global market.
It was founded in 1991 as an investment company. Main stages of development:
– 1994 – IPO on the New York Stock Exchange;
– 1996 – entry into the international market, projects in Mexico;
– 1998 – rebranding and name change to Prologis;
– 1999 – opening of property funds for the Californian and European markets;
– 2001-2002 – entry into the markets of China and Japan;
– 2011 – sale of most retail property projects, merger with AMB.
In addition to its development activities, Prologis is also a facility operator. Its clients include more than 4,500 companies in the retail, logistics, 3PL and other sectors. The company is the largest developer of logistics and distribution facilities in the Americas. The company actively develops and manages projects in the US, Canada, Mexico and Brazil. Its total portfolio in the region exceeds 2,330 properties.
Prologis continues to expand its presence in Europe. It operates in 14 countries and has more than 585 properties in the region.
The company is active in the build-to-suit property construction sector. Its clients in this area include major companies such as Marks & Spencer, BMW, Volkswagen and Amazon.
In its projects, Prologis uses advanced energy-saving technologies and solutions to reduce environmental impact. The company uses in-house developments that minimise carbon emissions during the construction of projects.
Prologis is expanding its geographic and operational portfolio with major projects in Singapore, the US and Japan. The company also plans to enter new promising markets, including Asia.