Prologis, Inc., one of the leading global owner, operator and developer of industrial real estate, has just announced it will become the sole sponsor of Japanese real estate investment trust Nippon Prologis REIT, Inc (NPR). As part of this sponsorship, Proplogis will retail a minimum of 15% ownership interest in the investment trust and include 12 of its Class-A Japanese properties, thus establishing its initial asset portfolio.
The 12 assets contributed by Prologis have been appraised at approximately JPY 173 billion ($2 billion). Mainly comprising properties located in Tokyo and Osaka, the newly establish portfolio totals 9.6 million square feet (890,000 square meters), the weighted average age being of 3.4 years.
NPR has already been approved for listing on the Tokyo Stock Exchange. The real estate investment trusts will serve as a long-term investment vehicle for modern logistics facilities.
As part of NPR’s efforts to expand its portfolio, the trust already has exclusive negotiation rights for another eight properties owned by Prologis. Through the sponsor support agreement, Prologis will also provide pipeline, operational and personnel assistance. Moreover, Prologis’ wholly owned subsidiaries will act as NPR’s property and asset managers.
Although the sponsorship is a great opportunity for the US-based Prologis, it not intended as a securities sales offer in the United States, as securities may not be offered or sold in the United States unless they are registered or exempt from registration. Yet the high-profile player in the industrial real estate market comes with valuable expertise which will benefit NPR. Focusing on global and regional markets across the Americas, Europe and Asia, Prologis currently owns or has invested in properties and development projects from 21 countries which will amount, upon completion, to about 565 million square feet (52.5 million square meters).