Yahoo Finance Prologis (PLD), Ivanhoe Cambridge to Create $890M JV in Brazil
Industrial REIT Prologis Inc. PLD and real estate investor Ivanhoé Cambridge have collaborated to capitalize on growing demand for modern logistics space in Brazil. Specifically, Prologis and Ivanhoé Cambridge have announced an agreement to form an $890-million joint venture (JV) with 20/80 stake. The transaction is conditioned upon customary closing norms, including relevant regulatory and third-party nods.
Prologis Brazil Logistics Venture will carry out developing and operating of logistics real estate in Brazil, particularly in São Paulo and Rio de Janeiro. The focus on São Paulo and Rio de Janeiro market is a strategic fit as more than 40% of the country’s GDP is located in São Paulo and Rio de Janeiro, and demand for modern logistics space is increasing in this region.
Moreover, economic reforms and efforts to boost consumption levels are likely to open up prospects for new business. This is expected to trigger demand for industrial real estates in Brazil.
Notably, the venture, at closing, will acquire an initial portfolio of assets of around 6.9 million square feet of operating properties and 371 acres of land from Prologis' balance sheet. It will do so with an assurance to build out the existing land bank.
Admittedly, Prologis has already earned its reputation for being the leading provider of logistics real estate around the globe. The company enjoys ownership or had investments in properties and development projects estimated to total around 771 million square feet in 19 countries as of Sep 30, 2018.
Moreover, the industrial real estate asset category has grabbed solid attention not only in the Brazilian market, but across several regions in the United States. This is because high-consumer spending, e-commerce boom, as well as healthy manufacturing environment amid recovering economy and job market are spurring demand for this real estate category. In addition to Prologis, other REITs, including Duke Realty DRE, Terreno Realty Corporation TRNO and Liberty Property Trust LPT, are expected to benefit from the same factors.
Nevertheless, there is rising supply of industrial real estate space and this will partly dampen the robust growth momentum in rents. Also, rate hike add to the REITs’ woes.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Prologis, Inc. (PLD) : Free Stock Analysis Report
Duke Realty Corporation (DRE) : Free Stock Analysis Report
Liberty Property Trust (LPT) : Free Stock Analysis Report
Terreno Realty Corporation (TRNO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
