Fund Strategy

ProLogis has funded its global expansion by creating property funds in partnership with institutional capital sources throughout the world. These funds acquire ProLogis’ newly developed, stabilized facilities as well as third-party assets in key global logistics hubs. Today, the company operates 17 such funds in North America, Asia and Europe, which combined own industrial property with an aggregate value of over $22 billion.

For fund partners, investing in ProLogis property funds delivers significant benefits. It enables them to achieve their investment objective of direct ownership in high-quality industrial facilities while generating stable, growing cash flows. It puts them in partnership with a company that has a proven track record of developing and managing distribution centers in key markets around the world. It also provides them access to scale and geographic diversity in their portfolios – both of which can be difficult to achieve in the industrial asset class, given the fragmented nature of the warehouse market and the relatively low value of individual properties.

For ProLogis, meanwhile, our property funds serve as a powerful growth engine, allowing us to redeploy development capital from stabilized properties into new projects on a continuous basis. By continuing to manage properties for each fund under long-term agreements, we recognize fees as well as our proportionate share of each fund’s earnings, resulting in a more diversified income stream and attractive returns on invested capital. Finally, the fund model allows us to maintain close relationships with our customers, which have been a key driver of growth and past success.