ProLogis (Denver), owner, manager and developer of distribution facilities, announced that it has formed four new property funds that will own state-of- the-art distribution centers in Europe, the United States, Mexico and South Korea.
The new funds have a combined capacity of over $14 billion. They will serve as exclusive investment vehicles for properties from ProLogis' development pipeline in their respective regions and will have the ability to make third-party acquisitions that meet the respective funds' criteria.
"Together with the capacity in ProLogis' existing funds, we now have fund agreements in place to support $33 billion of assets under management in funds -- more than double the $14.2 billion of assets under management at the end of the second quarter," said Jeffrey H. Schwartz, chairman and chief executive officer. "We expect to see a commensurate rise in fund management fee income as these new equity commitments are invested over the next three years."
Schwartz noted that the European and Mexican funds were oversubscribed.
"These new fund agreements illustrate the quality of our worldwide platform, as well as the global nature of the company's capital relationships," Schwartz said. "Our investment management business continues to serve as a powerful growth engine for ProLogis, allowing us to continue to serve our growing global customer base while redeploying capital efficiently and increasing and diversifying our revenue."
