Prologis, Inc. (NYSE: PLD) and Singapore‑based sovereign wealth fund GIC announced a $1.6 billion joint venture that will develop and own build‑to‑suit logistics facilities across key U.S. markets. The partnership commits $1.6 billion in capital, with an initial portfolio of roughly 4.1 million square feet and the flexibility to add further capacity as customer commitments materialize.
The deal is anchored in Prologis’ Strategic Capital platform, which manages $102 billion in assets, including $67 billion of third‑party capital. Build‑to‑suit has grown to more than 60% of Prologis’ development starts in 2025, reflecting a shift toward customized, high‑margin projects that meet the evolving needs of e‑commerce and supply‑chain customers. GIC, a global institutional investor that manages Singapore’s foreign reserves, brings long‑term capital and a disciplined investment approach that aligns with Prologis’ growth strategy.
Prologis CEO Daniel S. Letter said, "Build‑to‑suit activity continues to be one of the clearest signals of customer conviction across our business. This joint venture with GIC builds on that momentum by pairing our platform and development expertise with a partner that shares our long‑term perspective." GIC CIO Goh Chin Kiong added, "With strong e‑commerce growth, the re‑shoring of supply chains and resilient consumer spending, industrial remains a strong long‑term investment theme in North America. Our partnership with Prologis, a best‑in‑class operator, reflects our shared conviction in the sector and like‑minded approach to deploying capital with discipline across cycles."
The partnership positions Prologis to accelerate its build‑to‑suit pipeline, providing a new source of capital for purpose‑built logistics solutions that support automation, high throughput, and proximity to end markets. By leveraging GIC’s long‑term capital, Prologis can scale projects as customer commitments are secured, reinforcing its market leadership and expanding its footprint in the U.S. industrial real‑estate market.
Prologis reported Q4 2025 results on January 21 2026, showing revenue growth but some pressure on profitability metrics. Net earnings attributable to common stockholders rose year‑on‑year for the quarter but fell for the full year, while core FFO and AFFO edged down compared with 2024. The joint venture adds a strategic layer to Prologis’ financial profile, providing a stable capital base that complements its existing operating and development strengths.
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