Prologis and GIC Form $1.6B Joint Venture for Build-to-Suit Logistics Development Across U.S. Markets

Prologis, Inc. (NYSE: PLD) and GIC, a global institutional investor based in Singapore, announced March 19 the formation of a $1.6 billion joint venture to develop and own build-to-suit logistics facilities across major U.S. markets.

The venture includes $1.6 billion in combined capital commitments, anchored by an initial portfolio of approximately 4.1 million square feet, with additional capacity for future investments as customer commitments are secured.

Structure of the Joint Venture

The partnership will operate within Prologis Strategic Capital, the company's asset management business, combining Prologis' development and operating platform with long-term institutional capital from GIC. According to the announcement, Prologis serves as the development and operating partner, while GIC participates as an equity capital provider.

The venture is designed to scale with demand as customer commitments are secured. Prologis describes itself as the world's largest real estate company, with 1.3 billion square feet of properties across 20 countries and $230 billion of assets under management.

"Build-to-suit activity continues to be one of the clearest signals of customer conviction across our business," said Daniel S. Letter, Chief Executive Officer of Prologis. "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."

Long-Term Commitments Drive Build-to-Suit Demand

Build-to-suit development has grown as a share of Prologis' pipeline as customers make long-term commitments to distribution networks and operations. In 2025, Prologis started $3.1 billion in development projects, with build-to-suit accounting for more than 60% of those starts, according to the company.

Facilities developed under build-to-suit arrangements are increasingly designed to support automation, high throughput, and proximity to end markets. The company noted that these projects are typically pre-leased and built for long-term use, often for customers that view the facility as mission-critical to their supply chain networks.

For institutional investors, the build-to-suit model offers a distinct risk profile compared with speculative development, given that projects are generally pre-leased before construction begins.

GIC Cites Industrial Real Estate as Long-Term Theme

Goh Chin Kiong, Chief Investment Officer of Real Estate at GIC, pointed to structural demand drivers underpinning the venture's investment thesis.

"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," Goh 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 joint venture reinforces Prologis Strategic Capital as a growth platform, enabling Prologis to invest alongside institutional partners while deploying its development, operating, and customer capabilities across each partnership, the companies said.

The joint venture does not specify individual target markets by city or state, though the announcement references "major U.S. markets" broadly. The structure — scaling with secured customer commitments — suggests the venture will grow incrementally as Prologis signs new build-to-suit agreements.