Real Estate Tycoon Prologis Deploys Industrial Properties
at China Market
Prologis, a listed real estate tyccon at NYSE with 23.4 billion USD under management, owns a total of 34.6 million square meters properties for lease, spread across over its logistics facilities and branches at 70 strategic markets in the world. More than half of the top 1000 global enterprises are the core customers of Prologis, including UPS, FedEx, and manufacturing giants like Nokia, Samsung, Adidas, and Unilever, etc.
Prologis impresses industrial circles as "logistics property developer", but actually it is engaged in real estate investment, development and management. By acquiring land parcels and building warehouses, Prologis lease the properties to customers such as manufacturers, retailers, logistics companies, and then provide property management service.
Prologis landed in China in 2003, and within less than 3 years, it completed strategic market deployment in the coastal regions of China.
Prologis properties now cover 12 Chinese cities, e.g., Prologis Northwest Logistics Park in urban Shanghai, Suzhou Logistics Park, Bonded Logistics Park in Guangzhou, etc. In 2006, Prologis was designated as logistic supplier for China Olympic Organizational Committee, and its first building will be handed over for acceptance in the coming December. A spokesman tells reporters that Prologis has developed 570,000 square meters facilities in China at the increase rate of 500,000 M2 annually.
Official spokesman of Prologis expresses that the corporation is prepared to invest a total of 2 billion US dollars in the next 5 years, provided that sufficient demands and opportunities exist at the China market.
Of all the financing means for listed companies, REITs is the most preferred mode for Prologis in its business expansion. Once overseas capitals could turn domestic projects into REITs products, there will be high rate of returns.
Formerly founded as Security Capital Industrial Trust in 1991, Prologis became a publicly listed company at NYSE in 1992 during the upsurge of REITs in USA, and changed into the present name, Prologis Trust, in 1998, and finally the Prologis, the globally largest listed industrial property investment and trust company.
Similar operations are being carried out by Ascendas of Singapore, CB Richard Ellis, DBS, and Macquarile, and like Prologis, many of them are preparing for the opening of REITs in Hong Kong to list their packaged industrial properties in Hong Kong.
Aug. 10, 2006