Investment Strategy

ProLogis has funded its global expansion by creating property funds in partnership with institutional capital sources throughout the world. These funds acquire ProLogis’ developed and stabilized facilities as well as third-party assets in key global logistics hubs. Today the company operates 15 such funds in Asia, Europe and North America.

For fund partners, investing in ProLogis property funds enables them to achieve their investment objective of direct ownership in high-quality industrial facilities while generating stable 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, 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 returns on invested capital. The fund model also allows us to maintain close relationships with our customers, who are key to our continued success.