By Stephen Nakrosis
Prologis Inc. (PLD) said Wednesday it was expanding its Prologis China Logistics Venture 3, and formed a new fund.
Prologis and HIP China Logistics Investments Ltd. have committed an additional $882 million of equity value to the Prologis China Logistics Venture 3 development venture, which, with leverage, will allow it to develop $3.5 billion of warehouses in China, Prologis said.
The company also said it formed the $1.7 billion open-ended Prologis China Core Logistics Fund LP. The new fund, which has raised $445 million, will invest in operating logistics properties in China. The new fund will also acquire the existing portfolio of assets from Prologis China Logistics Venture 1.
"China represents the largest consumption opportunity in the world, with a sophisticated and rapidly-growing e-commerce market," said Prologis Chief Investment Officer Eugene F. Reilly. "Our strategy in China is to invest in the highest-quality logistics assets located in the most important consumption markets in the country."
As of Sept. 30, Prologis had $111 billion of assets under management.
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