Prologis overhauls its private funds arm

As the San Francisco-based industrial real estate firm integrates the capital partners division into its overall operations, its private capital chief Guy Jaquier prepares to retire.

Big changes are happening within Prologis. According to the San Francisco-based industrial real estate investment firm, it is reorganizing its capital partners division, which includes its private funds arm. 

Hamid Moghadam, chairman and CEO of Prologis, said the firm will be making some major changes to its capital markets division going forward. “Activities formerly part of Prologis Capital Partners will expand to encompass both public and private strategic capital initiatives focused on distinct geographies within our global platform,” he said. “The leadership of this function will be integrated into our entire executive team, rather than managed as a separate line of business.”

In conjunction with the overhaul of its private capital group, Guy Jaquier, chief executive officer of private capital at Prologis, is planning to retire this year after his responsibilities have been successfully transferred. Upon his retirement, Jaquier will continue to serve as a member of the firm's investment committee.

“This is a personal decision, and I am in a fortunate position where I can scale back my full-time professional pursuits,” Jaquier said. “I appreciate the opportunity to have been part of the company and look forward to helping guide its significant growth through my continued role on the investment committee.”

Moghadam added: “During his 13-year tenure, Guy has played a critical role in establishing and expanding our business outside the US, as well as re-energizing our private capital franchise.”

In other news, Prologis also announced that its new J-REIT, Nippon Prologis REIT, is selling further units to raise ¥82.8 billion (€626 million; $808 million) of equity. The money will be used to buy eight logistics warehouses in Japan from Prologis, six from one of its funds and two from its wholly-owned portfolio, in a transaction valued at ¥132.4 billion. 

Prologis, as well as the wider Japanese logistics real estate market, has enjoyed a significant rise in domestic institutional and retail investor support lately. The Nippon Prologis REIT was launched in February, enabling Prologis to exit a majority position in 12 logistics warehouses and raise ¥173 billion for the firm. Meanwhile, the shares of the J-REIT have surged some 57 percent, meaning the firm has been able to sell again into a welcoming market.

Additional reporting by Jonathan Brasse