Key Takeaways
- • Prologis and Ivanhoé Cambridge announced a USD $890 million joint venture in Brazil structured as a 20/80 partnership, with Prologis holding the minority stake and Ivanhoé Cambridge the majority position.
- • The Prologis Brazil Logistics Venture will acquire an initial portfolio of approximately 6.9 million square feet of operating properties and 371 acres of developable land from Prologis' balance sheet, focused on São Paulo and Rio de Janeiro markets.
- • The partnership leverages Ivanhoé Cambridge's Brazil experience dating to 2006 and Prologis' position as the global leader in logistics real estate to capitalize on growing e-commerce and supply chain demand in Brazil's two largest economic centers, which collectively represent over 40% of national GDP.
- • The transaction remains subject to customary closing conditions, including regulatory and third-party approvals, with no closing timeline specified in the announcement.
Summary
Prologis, Inc. (NYSE: PLD) and Ivanhoé Cambridge announced on November 5, 2018, an agreement to establish a joint venture focused on logistics real estate development and operations in Brazil. The venture, valued at USD $890 million, will be structured as a 20/80 partnership with Prologis retaining a minority stake and Ivanhoé Cambridge assuming the majority position.
At closing, the Prologis Brazil Logistics Venture will acquire an initial portfolio consisting of approximately 6.9 million square feet of operating properties and 371 acres of land from Prologis' existing balance sheet. The venture will focus specifically on São Paulo and Rio de Janeiro, the country's primary economic hubs, which combined account for more than 40% of Brazil's GDP. Beyond the initial acquisition, the venture commits to developing the existing land bank to expand the portfolio.
The partnership combines complementary strategic assets: Prologis brings its position as the global leader in logistics real estate with specialized focus on high-barrier, high-growth markets, while Ivanhoé Cambridge contributes deep institutional experience in Brazil, having maintained an active investment presence in the country since 2006. Gene Reilly, Prologis' CEO of the Americas, emphasized the partnership's positioning to meet rising demand for modern logistics facilities in Brazil's concentrated economic centers. Rita-Rose Gagné, President of Growth Markets for Ivanhoé Cambridge, highlighted the venture's alignment with the investor's broader global strategy to significantly increase exposure to industrial and logistics assets in key markets worldwide.
The transaction is contingent upon satisfaction of customary closing conditions, including applicable regulatory approvals and third-party consents.
At closing, the Prologis Brazil Logistics Venture will acquire an initial portfolio consisting of approximately 6.9 million square feet of operating properties and 371 acres of land from Prologis' existing balance sheet. The venture will focus specifically on São Paulo and Rio de Janeiro, the country's primary economic hubs, which combined account for more than 40% of Brazil's GDP. Beyond the initial acquisition, the venture commits to developing the existing land bank to expand the portfolio.
The partnership combines complementary strategic assets: Prologis brings its position as the global leader in logistics real estate with specialized focus on high-barrier, high-growth markets, while Ivanhoé Cambridge contributes deep institutional experience in Brazil, having maintained an active investment presence in the country since 2006. Gene Reilly, Prologis' CEO of the Americas, emphasized the partnership's positioning to meet rising demand for modern logistics facilities in Brazil's concentrated economic centers. Rita-Rose Gagné, President of Growth Markets for Ivanhoé Cambridge, highlighted the venture's alignment with the investor's broader global strategy to significantly increase exposure to industrial and logistics assets in key markets worldwide.
The transaction is contingent upon satisfaction of customary closing conditions, including applicable regulatory approvals and third-party consents.
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