Denver-based industrial REIT ProLogis has launched four new property funds to invest in distribution centers in the US, Europe, Mexico and South Korea. The new funds have a combined purchasing power of more than $14 billion (€10.4 billion).
“Together with the capacity in ProLogis’ existing funds, we now have fund agreements in place to support $33 billion of assets under management in funds—more than double the $14.2 billion of assets under management at the end of the second quarter,” Jeffrey Schwartz, ProLogis chairman and chief executive officer, said in a statement. “These new fund agreements illustrate the quality of our worldwide platform, as well as the global nature of the company’s capital relationships.”
ProLogis European Properties Fund II has raised €3 billion in equity, for a total investment capacity of up to €7.5 billion. The fund is the firm’s second in Europe. ProLogis European Properties, its first European fund, was created in 1999 and has approximately 62 million square feet of industrial property in 11 countries.
Investors in the new European fund include ProLogis European Properties; the CPP Investment Board, which invests the assets of the Canada Pension Plan; and an affiliate of GIC Real Estate, the real estate investment arm of the Government of Singapore.
In Mexico, ProLogis MX Industrial Fund has $625 million of equity, for a $1.5-billion investment capacity. The fund has an initial term of ten years, with the option of extending an additional five years. An initial portfolio of the firm’s Mexican assets will be contributed to the fund, including approximately 3.8 million square feet in five markets, representing an investment of over $200 million.
ProLogis Korea Fund has $250 million in commitments and will have an investment capacity of approximately $500 million. The fund recently completed the acquisition of its first asset, a 108,000-square-foot, fully leased distribution facility along the Seoul-Busan Expressway outside Seoul. The initial life of the fund is 15 years.
The new US property fund, ProLogis North American Industrial Fund II, was created in July when ProLogis acquired the outstanding units of the Macquarie ProLogis Trust, a vehicle listed in Australia.
Last month, the firm created a special real estate fund to acquire the logistics assets from DP Industrial, a joint venture between Reno, Nevada-based developer Dermody Properties and the California State Teachers Retirement System, for $1.85 billion.
The properties were acquired by ProLogis North American Properties Fund III. With the transaction, the firm picked up 114 properties with a total of 24.7 million square feet of industrial space in the Reno, Las Vegas, Eastern Pennsylvania, Chicago and Southern California markets.
ProLogis currently has close to $30 billion of assets under management.