With Merger Complete, Prologis Plans Aggressive Expansion in Asia Warehousing
Bloomberg reports: Dynamics in the industrial commercial real estate sector have undergone significant changes over the past year. As stated in a recent Bloomberg article on the sector, "Industrial companies are the second best-performing group in the Bloomberg REIT index over the past 12 months, rising 32 percent as of yesterday. U.S. sales of warehouses and distribution centers rose 11 percent in the first quarter from a year earlier to $3.2 billion.’ Bloomberg also cited data aggregated by Real Capital Analytics’ (RCA) to stated that the sector currently has the smallest amount of distressed assets of any property type, with RCA’s Ben Carlos Thypin adding that, “Industrial is a steady performer and isn’t correlated to other sectors…It didn’t get hot during the boom, and didn’t drop much during the crash.”
Of course the largest story in the industrial sector over the past year came in early 2011 when Prologis and AMB Property Corp announced they would merge to form the world’s largest warehouse owner and the fourth largest public REIT in the US. Now Prologis, the post-merger firm approved by shareholders on June 1, is leading US REITs' charge into acquisition-mode; the firm recently announced it plans to double its holdings in Asia while pairing duplicative and underperforming properties in North America and Europe.
Hamid Moghadam, co-CEO of freshly-merged Prologis, stated to Bloomberg that, “If you think about growth rates, the emerging markets are where all the action is.” Mr Moghadam is also expecting his firm to expand in Japan, already Prologis’ largest Asian market, as the nation rebuilds after March’s natural disaster.
For more on industrial REITs and Prologis’ post-merger plans, please see the full article on Bloomberg’s site.
View the full article on Bloomberg: With Merger Complete, Prologis Plans Aggressive Expansion in Asia Warehousing
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Posted by: Nina Turner