{"id":1004167572,"date":"2017-02-27T05:00:27","date_gmt":"2017-02-27T13:00:27","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004167572"},"modified":"2022-12-08T15:37:34","modified_gmt":"2022-12-08T23:37:34","slug":"prologis-cbre-global-investors-team-up-for-big-uk-effort","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/prologis-cbre-global-investors-team-up-for-big-uk-effort\/","title":{"rendered":"Prologis, CBRE Global Investors Team Up for Big UK Effort"},"content":{"rendered":"

By Scott Baltic, Contributing Editor <\/em><\/p>\n

San Francisco<\/strong>\u2014Prologis and CBRE Global Investment Partners, a division of CBRE Global Investors, have formed a new development venture in the United Kingdom, one worth at least $1.2 billion, the two companies announced Friday.<\/p>\n

Dubbed Prologis UK Logistics Venture, the entity will pursue a develop-to-own strategy focusing on prime markets in the East and West Midlands, London and the South East. It will acquire land, develop buildings, and operate and hold logistics real estate and will be seeded with a 7.6 million-square-foot portfolio of stabilized properties, developments in progress and land, with an initial closing of about 3.9 million square feet.<\/p>\n

\"Danny<\/a>

Danny Queenan, President, CBRE Global Investors<\/p><\/div>\n

UKLV will be structured as a 15\/85 joint venture with 15 percent owned by Prologis and 85 percent owned by clients of CBRE Global Investment Partners, with total expected value of approximately \u00a31 billion GBP ($1.26 billion).<\/p>\n

\u201cOur customers continue to grow in the UK and this venture helps meet new demand,\u201d Gary Anderson, CEO of Prologis Europe and Asia, said in a prepared statement. \u201cCurrent opportunities exceed the capacity of our existing funds, and partnering with CBRE Global Investment Partners is an efficient way to match available capital with the breadth of prospects in the UK.\u201d<\/p>\n

Prologis currently owns and operates 23 million square feet in 97 buildings in the U.K. market.\u00a0 Its business strategy in Europe is to hold properties in a series of funds, and UKLV is an extension of that. The venture is the first dedicated to the U.K. market, though Prologis\u2019 existing European funds already have significant allocations to U.K. properties.<\/p>\n

The transaction is expected to close at the end of February.<\/p>\n

CBRE Global Investment Partners was advised by CBRE Capital Markets and Jones Day. Prologis\u2019 in-house legal team was assisted by Linklaters LLP.<\/p>\n

Demand for warehouse\/distribution space in the U.K. has remained strong, with no significant post-Brexit impact, largely due to two factors, Charles Binks\u2028, Department Head, Logistics and Industrial with Knight Frank LLP, London, told Commercial Property Executive<\/em>.<\/p>\n

First, he explained, demand is being driven by continued growth in e-commerce. U.K. consumers are among the world\u2019s most active online shoppers, so much so that online sales accounted for 17 percent of total retail sales in 2016.<\/p>\n

Second, Binks said, \u201cwe are also seeing strong demand from discount retailers, with both Aldi and Lidl having aggressive store expansion plans, which will require the support of larger logistics platforms.\u201d<\/p>\n

As a result, he continued, investors \u201csee opportunities for continued growth both in demand and rental values.\u201d<\/p>\n

And even though there\u2019s some evidence of weakening demand, the supply of good-quality modern units is at an all-time low, according to Binks.<\/p>\n

One effect of the Brexit vote was on the availability of funding for spec development, putting back decisions by six to 12 months. However, he added, \u201cJVs such as this are a sign that investors are exploring alternative routes to securing good-quality investment stock in an increasingly competitive market.\u201d<\/p>\n

Finally, the drop in the pound\u2019s value has made the U.K. more attractive to many overseas investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

The $1.2 billion logistics venture will pursue a develop-to-own strategy in prime markets in the East and West Midlands, London and the South East. <\/p>\n","protected":false},"author":882,"featured_media":1004167598,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21748,16,21783,21742,1609],"tags":[32789,32956],"class_list":["post-1004167572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-industrial","category-international","category-investment","category-latest","category-san-francisco","tag-cbre","tag-prologis"],"acf":[],"yoast_head":"\nPrologis, CBRE Global Investors Team Up for Big UK Effort - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/prologis-cbre-global-investors-team-up-for-big-uk-effort\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Prologis, CBRE Global Investors Team Up for Big UK Effort\" \/>\n<meta property=\"og:description\" content=\"The $1.2 billion logistics venture will pursue a develop-to-own strategy in prime markets in the East and West Midlands, London and the South East.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/prologis-cbre-global-investors-team-up-for-big-uk-effort\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2017-02-27T13:00:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T23:37:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/02\/Danny-Queenan.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/prologis-cbre-global-investors-team-up-for-big-uk-effort\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/prologis-cbre-global-investors-team-up-for-big-uk-effort\/\",\"name\":\"Prologis, CBRE Global Investors Team Up for Big UK Effort - 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