Prologis, GIC Form $1.6B Logistics JV

Prologis and GIC have formed a $1.6 billion joint venture. The companies are setting out to develop and own build-to-suit logistics projects in major U.S. markets.

The joint venture’s initial portfolio encompasses 4.1 million square feet, with room for additional investment. The partnership operates under Prologis’ asset management arm, Prologis Strategic Capital, and is backed by long-term capital from GIC.

Prologis CEO Daniel Letter said in prepared remarks the venture reflects strong customer demand for build-to-suit industrial space and is intended as a long-term opportunity.

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This is GIC’s second partnership of this kind. Earlier this year, the global investment firm teamed up with Realty Income Corp. to target fully leased build-to-suit properties. The joint venture’s combined capital commitments exceed $1.5 billion.

Prologis’ versatile industrial pipeline

Currently, Prologis owns 1.3 billion square feet of properties in 20 countries and $230 billion in assets under management.

Build-to-suit projects are a core part of Prologis’ pipeline. In 2025, they made up 60 percent of the $3.1 billion worth of the company’s development starts.

For example, last April, Prologis and Broadstone Net Lease partnered on a $78.2 million build-to-suit project in Forsyth, Ga., for Fiat Chrysler Automobile, which is set to deliver this summer. The tenant has committed to the space for 15 years.

On the speculative industrial front, Prologis received unanimous approval in November to develop a 1.6 million-square-foot industrial park in San Francisco. The project is looking to replace four 1940s-built warehouses.