US-based real estate investment trust Prologis has committed €250m to its Prologis European Logistics Fund (PELF).
The move will be matched with a similar commitment of $250m to its Prologis US Logistics Funds (USLF). According to the firm, the new infusion of capital will allow the funds to “further invest in high-quality industrial assets, creating value for investors and strengthening its position as the global leader in its sector”.
Karsten Kallevig, managing director, Global Strategic Capital at Prologis, said: “Industrial real estate continues to be an attractive place for capital investment, especially USLF and PELF’s well-located and high-quality portfolios. These vehicles have proven to have exceptional performance across market cycles. Now that external valuations have caught up with the market, we view this as a good time to invest.”
Core industrial properties
PELF was formed by Prologis in 2007 as an open-ended vehicle for owning and operating core industrial properties across the continent. This overview of the fund indicates it has a net market value of €18.8bn, with outstanding debts of €5.2bn, and operates 785 properties in 12 countries, with an occupancy rate of 97.8%.
Last year the firm highlighted its green and ESG credentials on Euronews, writing in a piece of ‘partner content’: “We issued our first sustainability report in 2011 and ESG is woven into our fabric and steers decision-making from the boardroom to all corners of our business. We ensure that our buildings are constantly cutting-edge from a technology standpoint, be it sensors, solar and EV charging, but also in keeping with our ESG goals in line with the UN’s Sustainable Development Goals (SDGs).”
It added: “Our goals include 1 GW of solar generation capacity (supported by storage) by 2025, 100% carbon-neutral construction by 2025, and net zero by 2040 for Scope 1, 2, and 3 emissions. Since 2019, we have been carbon neutral for our Scope 1 and 2 emissions, and we have decreased our Scope 3 emissions by 38% from a 2016 baseline.”