Prologis and GIC Forge Major $1.6 Billion U.S. Logistics Partnership

Prologis and GIC Launch $1.6 Billion Logistics Joint Venture

San Francisco and Singapore – In a significant investment move, Prologis, Inc. (NYSE: PLD) has partnered with GIC, a prominent global institutional investor, to create a $1.6 billion joint venture dedicated to the development and ownership of build-to-suit logistics facilities in major U.S. markets. The announcement was made on March 19, 2026, marking a crucial step towards enhancing logistics infrastructure in various urban centers.

The joint venture combines capital commitments from both partners amounting to $1.6 billion, which includes an initial portfolio of approximately 4.1 million square feet with the potential for future expansion. Prologis stands as the world's largest logistics real estate provider, boasting 1.3 billion square feet of properties across 20 countries and managing a staggering $230 billion in assets.

Daniel S. Letter, CEO of Prologis, emphasized the importance of this venture, stating, "Build-to-suit activity continues to be one of the clearest signals of customer conviction across our business." He highlighted that this collaboration not only leverages Prologis' extensive development expertise but also aligns with GIC’s long-term investment perspective.

The venture will integrate the operational framework of Prologis with GIC's long-lasting institutional capital, functioning within Prologis Strategic Capital, the firm’s asset management division. This strategic approach is aimed at scaling alongside the increasing demand from customers and investment projects.

Goh Chin Kiong, Chief Investment Officer of Real Estate at GIC, added, “With robust growth in e-commerce, a trend towards re-shoring supply chains, and resilient consumer expenditure, industrial investments remain a strong long-term theme in North America.” His remarks underscore the venture's potential to attract significant long-term commitments amidst evolving market dynamics.

Demand for Custom Infrastructure

The rise in demand for build-to-suit facilities is seen as a pivotal element of Prologis' current pipeline. The year 2025 witnessed the commencement of $3.1 billion in development projects, with over 60% of these designated as build-to-suit. This uptick underscores how vital long-term commitments have become for businesses seeking tailored logistics solutions.

As customers prioritize certainty regarding location and functionality, build-to-suit projects have emerged as essential frameworks that cater to contemporary supply chain needs. Facilities are increasingly designed to facilitate automation, optimize throughput, and meet proximity requirements to end markets, thereby enhancing operational performance.

The attributes of build-to-suit projects resonate well with institutional investors due to their unique risk profile. Typically, these projects are pre-leased and geared for long-term occupation, often favored by companies perceiving these facilities as critical to their supply chain hierarchy.

The strategic partnership between Prologis and GIC not only strengthens Prologis Strategic Capital as a vehicle for growth but also allows Prologis to consolidate its reputation as a leader in logistics real estate while guaranteeing substantial returns on investments alongside institutional partners.

About Prologis and GIC

Prologis is defined by its commitment to developing intelligent infrastructure that powers global commerce. With its extensive reach and innovative logistics solutions, it continues to shape the industry by ensuring a seamless connection between digital and physical supply chains.

GIC, established in 1981, is strategically managing Singapore's foreign reserves by applying a disciplined investment approach across various asset classes, making it a significant player in the global investment landscape. With a commitment to value addition and long-term growth, GIC aims to foster valuable partnerships while supporting financial stability.

Both organizations are set to impact the logistics sector significantly, marking a transformative period for the U.S. logistics framework and setting the stage for future advancements in the domain.