Prologis, GIC form $1.6 billion U.S. logistics venture as ecommerce builds

Prologis and GIC have formed a $1.6 billion joint venture to develop build-to-suit logistics facilities across major U.S. markets, the companies said March 19.

The venture includes an initial portfolio of about 4.1 million square feet, with additional capacity to expand as the companies secure new projects. Prologis will manage the venture through its Strategic Capital business, which invests alongside institutional partners in logistics real estate.

Prologis, GIC team up on logistics

The announcement reflects continued demand for customized distribution facilities tied to ecommerce growth and evolving supply chain requirements.

Build-to-suit projects — typically pre-leased and designed for a specific tenant — accounted for more than 60% of Prologis’ $3.1 billion in development starts in 2025, according to the company.

Executives said customers are making longer-term commitments to logistics networks and prioritizing facilities that support:

• Automation.
• Higher throughput.
• Proximity to end markets.

“These projects are increasingly tied to how companies structure fulfillment for ecommerce and other time-sensitive delivery models,” the company said.

The joint venture combines Prologis’ development and operating platform with long-term institutional capital from GIC. The partners said the platform is designed to scale as customer demand is secured.

GIC said its investment reflects continued confidence in U.S. industrial real estate, citing ecommerce growth, supply chain shifts and steady consumer demand as key drivers.

For distributors and manufacturers, the expansion of build-to-suit development points to a broader shift toward purpose-built logistics facilities designed to support faster delivery, more complex inventory management and increased use of automation.

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