Prologis, a real estate company and real estate investor Ivanhoé Cambridge have formed an $890 million joint venture in Brazil. Prologis Brazil Logistics Venture will develop and operate logistics real estate in Brazil, specifically in São Paulo and Rio de Janeiro.
SAN FRANCISCO, Nov. 5, 2018 /PRNewswire/ — Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, and global real estate investor Ivanhoé Cambridge today announced an agreement to form a 20/80 joint venture in Brazil.
Prologis Brazil Logistics Venture will develop and operate logistics real estate in Brazil, specifically in São Paulo and Rio de Janeiro. 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,” said 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 percent of the country’s GDP is located in São Paulo and Rio de Janeiro.”
Rita-Rose Gagné, President, Growth Markets for Ivanhoé Cambridge added: “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.”
The transaction is subject to customary closing conditions, including applicable regulatory and third-party approvals.
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of September 30, 2018, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 771 million square feet (72 million square meters) 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.
ABOUT IVANHOÉ CAMBRIDGE
Ivanhoé Cambridge develops and invests in high-quality real estate properties, projects and companies that are shaping the urban fabric in dynamic cities around the world. It does so responsibly, with a long-term view to generate optimal, risk-adjusted returns. Ivanhoé Cambridge is committed to creating living spaces that foster the well-being of people and communities, while reducing its environmental footprint.
Vertically integrated in Canada, Ivanhoé Cambridge invests internationally alongside strategic partners and major real estate funds that are leaders in their markets. Through subsidiaries and partnerships, the Company holds interests in more than 1,000 buildings, primarily in the residential, office, retail, industrial and logistics sectors. Ivanhoé Cambridge held more than C$60 billion in assets as at June 30, 2018 and is a real estate subsidiary of the Caisse de dépôt et placement du Québec (cdpq.com), one of Canada’s leading institutional fund managers. For more information: ivanhoecambridge.com.