Prologis Inc. (NYSE: PLD) and GIC, Singapore's sovereign wealth fund manager, announced the formation of a $1.6 billion joint venture to develop and own build-to-suit logistics facilities across major U.S. markets.

The venture includes an initial portfolio of approximately 4.1 million square feet with capacity for additional future investments. The partnership will operate within Prologis Strategic Capital, the company's asset management business.

"Build-to-suit activity continues to be one of the clearest signals of customer conviction across our business," said Daniel S. Letter, chief executive officer of Prologis. "This joint venture with GIC builds on that momentum by pairing our platform and development expertise with a partner that shares our long-term perspective."

Build-to-suit development represented more than 60% of Prologis' $3.1 billion in development project starts during 2025. The company manages $230 billion in assets under management across 1.3 billion square feet of properties in 20 countries.

Goh Chin Kiong, chief investment officer of Real Estate at GIC, stated the partnership reflects shared conviction in the industrial sector. "With strong e-commerce growth, the re-shoring of supply chains and resilient consumer spending, industrial remains a strong long-term investment theme in North America," he said.

The joint venture is designed to scale with demand as customer commitments are secured. Build-to-suit projects are typically pre-leased and built for long-term use, often supported by customers who view facilities as mission-critical to their networks.

Prologis Strategic Capital manages $102 billion in assets, including $67 billion of third-party capital. GIC, established in 1981, manages Singapore's foreign reserves and maintains a global presence with over 2,300 employees in 11 financial cities.