ProLogis (PLD), a leading global provider of distribution facilities, recently agreed to jointly manage, own and develop its distribution properties in Japan with a local company. The move is chiefly aimed at reducing its operating risk in the country, given continued weakening of the global economy.
ProLogis has signed the deal with Japan Logistics Fund Inc. – the only real estate investment trust (REIT) in the country that primarily focuses on logistics companies. Japan Logistics Fund is managed by the asset management firm Mitsui & Co. Logistics Partners Ltd.
With this deal, ProLogis will jointly own part of the development portfolio with Japan Logistics Fund and continue to exclusively own others. However, ProLogis will continue to manage and lease the joint venture properties and earn management fees related to these services. On the other hand, Japan Logistics Fund would gain external growth opportunities through long-term ownership of state-of-the-art distribution facilities.
ProLogis owns and manages interests in over 2,500 distribution facilities, service offices and properties spanning 475 million square feet of space. As of June 30, the company had 200.5 million square feet of direct-owned industrial properties – 81.5% of which were located in North America, 14.2% in Europe and 4.3% in Asia.
With nearly 8.2 million square feet of distribution space and 98 acres of land for future development, ProLogis is one of the largest providers of distribution facilities in Japan. Its major customers in the country include Yamato Logistics, diversified producer Daikin Industries, warehouse club chain Costco and leading air and ocean freight firm Kintetsu World Express.
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