Prologis and the global institutional investor GIC have announced the formation of a $1.6 billion joint venture. The partnership focuses on the development and ownership of build-to-suit logistics facilities across major markets in the United States. This new venture begins with an initial portfolio of approximately 4.1 million square feet. There is also significant capacity for further investments as the project scales.

The deal leverages the position of Prologis as the largest logistics real estate firm in the world. The company currently manages $230 billion in assets and 1.3 billion square feet of property across 20 countries. This venture will sit within Prologis Strategic Capital which is the asset management arm of the firm. It intends to expand as more customer commitments are finalised for new projects.

Daniel S. Letter, chief executive officer of Prologis, highlighted the importance of this activity. “Build-to-suit activity continues to be one of the clearest signals of customer conviction across our business,” he said. “This joint venture with GIC builds on that momentum by pairing our platform and development expertise with a partner that shares our long-term perspective.”

The demand for these custom facilities is rising as companies seek proximity to end markets and support for automation. In 2025, Prologis started $3.1 billion in new developments. More than 60 per cent of those projects were build-to-suit sites. These facilities offer a specific risk profile for investors because they are usually pre-leased and considered mission-critical by the tenants.

Goh Chin Kiong, chief investment officer of Real Estate at GIC, noted the strength of the industrial sector. “With strong e-commerce growth, the re-shoring of supply chains and resilient consumer spending, industrial remains a strong long-term investment theme in North America,” he said. “Our partnership with Prologis, a best-in-class operator, reflects our shared conviction in the sector and likeminded approach to deploying capital with discipline across cycles.”

The agreement reflects a shared belief in the resilience of the North American industrial market. As supply chains continue to change, these purpose-built sites provide certainty for long-term occupancy. This partnership allows Prologis to invest alongside institutional partners while utilising its established operating platform.