Singapore’s sovereign wealth fund tapped the world’s largest industrial developer for a $1.6B joint venture — its second 10-figure logistics bet this year.
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GIC and Prologis are targeting U.S. build-to-suit logistics projects with a new unnamed JV that will operate within Prologis Strategic Capital, the industrial giant’s asset management arm. The venture has already built a roughly 4.1M SF portfolio with capacity for expansion, the two partners announced Thursday.
"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 Chin Kiong, GIC’s chief investment officer of real estate, said in a statement.
GIC announced a similar deal with net lease REIT Realty Income Corp. in January involving $1.5B in combined capital commitments targeting build-to-suit projects for investment-grade tenants.
Build-to-suit demand has become a key driver of development deals for Prologis, accounting for 60% of its $3.1B worth of 2025 development starts. The firm expects 55% of its 2026 completions to be build-to-suit projects before jumping to nearly 65% in 2027 and beyond, according to fourth-quarter results released Jan. 21.
Those figures include data center development, the fast-growing sector fueling the adoption of artificial intelligence, while the JV is focused on logistics facilities, at least some of which it plans to maintain ownership of after they are built for specific customers.
"Build-to-suit activity continues to be one of the clearest signals of customer conviction across our business," Prologis CEO Dan Letter said in a statement. "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."
Less than half of the committed capital has been deployed for acquisitions in the existing portfolio, a spokesperson for Prologis said. They declined to provide additional details about the properties the JV has already purchased.
Warehouse and distribution tenants have been forging ahead despite the uncertainty sown by President Donald Trump’s tariff regime, and demand for space accelerated in the back half of 2025 to end the year with the strongest demand since 2023, according to Cushman & Wakefield.
The number of deals of more than 500K SF was up 32% year-over-year, driven by leasing from third-party logistics firms and manufacturers in the second half of 2025. That will help chip away at the record 1.5B SF of industrial space that was on the market after large occupiers pulled back amid economic uncertainty starting in 2023.
GIC has poured billions of dollars into the global logistics sector. Its deal with Realty Income is fueling the REIT’s global expansion and includes two preleased industrial properties in Mexico that the JV has agreed to purchase for $200M.
GIC is also in exclusive talks to partner with Valor Real Estate on the roughly $575M acquisition of Horizon Logistics Park, an expansive campus on the outskirts of Dublin. The property went up for sale last year, and GIC beat out bids from KKR and Aermont Capital for the 1.7M SF of logistics space and additional land approved for up to 2M SF of development.
UPDATE, MARCH 20, 11:05 A.M. ET: This story has been updated with a statement from Prologis.
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