La Caisse Forms €1 Billion European Logistics JV With Prologis
Quebec investment manager La Caisse has signed a deal with Prologis, Inc. to form a joint venture focused on acquiring, developing and operating logistics properties in Europe.
Under the plan, La Caisse will hold a 70 per cent stake, while Prologis will own 30 per cent.
Prologis will be the operating partner and provide specialized asset management and development expertise.
The joint venture will have about $1.6 billion in seed assets combining income-generating properties and development sites contributed by both partners.
It will include logistics operations across France, Germany, the Netherlands, Sweden and the United Kingdom.
La Caisse and Prologis have worked together since 2019, when they formed a logistics joint venture in Brazil.
Natasha Voase of Bloomberg also reports Prologis, Caisse in US$1.2 billion logistics joint venture for European assets:
La Caisse de Depot et Placement du Quebec and Prologis Inc. have set up a €1 billion (US$1.2 billion) joint venture to acquire and run European logistics assets as geopolitical uncertainty continues to reshape supply chains.
The partnership between the Canadian pension manager and the world’s largest industrial landlord will start with a roughly €1 billion portfolio of properties across France, Germany, the Netherlands, Sweden and the United Kingdom, according to a statement Thursday. The pair will grow the joint venture, 70 per cent of which is owned by La Caisse, through acquisitions and development.
The conflict in the Middle East has stirred up fresh risks for commercial real estate, where dealmaking and prices have been gradually recovering from the 2022 inflation spike. The recent jump in bond yields — a key proxy for real estate valuations — has undermined deals that were previously agreed. For logistics in particular, there’s a risk of a hit to corporate margins from higher fuel prices, in turn weakening the rental market.
Investors such as La Caisse and San Francisco-headquartered Prologis are betting that the growth of ecommerce and changing manufacturing needs will keep fueling demand for logistics sites.
“It’s not really about a short-term impact that we’re delivering here, but really long-term growth prospects and scalability,” Christina Forrest, managing director of European real estate at La Caisse, said in an interview. “It’s not something that we would pull away from because of some uncertainties that are surrounding us at the moment.”
The conflict could also encourage companies to continue work begun during the pandemic to overhaul their supply chains, such as bringing production closer to consumers. The ongoing global reconfiguration is also driving ecommerce demand to a “large degree,” Forrest said.
“So actually, if there’s any positive to some of the bad stuff going on, that’s one,” she added.
Earlier today, La Caisse issued a press release stating it teamed up with Prologis to launch a pan-European logistics joint venture:
La Caisse (formerly CDPQ), a global investment group, and Prologis, Inc. (NYSE: PLD) today announce an agreement to create Prologis Logistics Investment Venture Europe (PLIVE), a new pan European joint venture focused on acquiring, developing and operating high-quality logistics properties.
La Caisse and Prologis will hold 70% and 30% interests, respectively, with governance rights shared between the partners. Prologis will provide specialized asset management and development expertise as the operating partner of the platform.
The PLIVE launch portfolio will provide immediate scale in Europe’s key logistics corridors and a strong foundation for demand-led, long-term growth. This venture builds on an established relationship between the two firms dating back to 2019, when they formed a logistics joint venture in Brazil.
With approximately EUR 1 billion in seed assets (CAD 1.6 billion), the platform will initially combine income-generating properties and development sites contributed by both partners. This will include approximately 844,000 square metres of Class A logistics space across France, Germany, the Netherlands, Sweden and the United Kingdom.
“We have seen Prologis’ best-in-class capabilities to drive returns firsthand through our partnership in Brazil, and we are building on our combined strengths to create a truly consolidated pan-European platform. This joint venture brings together Prologis’ deep hands-on operational expertise and our vision to actively transform assets to enhance long-term value,” said Rana Ghorayeb, Executive Vice-President and Head of Real Estate at La Caisse. “Together, we will gain greater exposure to the European logistics sector, strengthen execution, and maximize the performance and scale of our logistics portfolio.”
“Our partnership with La Caisse is built on years of working together and delivering results,” said Ted Eliopoulos, Managing Director, Strategic Capital, Prologis. “Together, we’re expanding that success in Europe—combining long-term capital with our operating platform to scale high-quality logistics assets across key markets.”
The partners plan to expand the platform through acquisitions and development across key European logistics corridors, leveraging Prologis’ sourcing, development and operating platform.
While the PLIVE platform will benefit from a shared pipeline of opportunities, Prologis will manage the properties, including accelerating leasing and development, with major strategic and financial decisions made jointly. The joint venture reflects the companies’ confidence in the long-term fundamentals of the European logistics sector, as companies reshape supply chains, move production closer to home and continue to invest in e-commerce.
The transaction, expected to close in the second quarter of 2026, remains subject to customary closing conditions and regulatory approvals.
Goldman Sachs & Co. LLC acted as exclusive financial advisor to La Caisse.
ABOUT LA CAISSE
At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.
As a global investment group, we’re active in the major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2025, La Caisse’s net assets totalled $517 billion. For more information, visit lacaisse.com
When I read the name, Ted Eliopoulos, Managing Director, Strategic Capital, Prologis, in the press release, it immediately rang a bell.
Ted was formerly the CIO of CalPERS which is on his biography at the Prologis site:
Ted Eliopoulos is managing director, Strategic Capital, at Prologis. A seasoned and respected investment management executive, Eliopoulos is responsible for leading the continued growth of Prologis’ private investment business.
Prior to joining Prologis, Eliopoulos was managing director at Morgan Stanley Investment Management, where he served as vice chairman, head of Strategic Partnerships, and CEO and president of Calvert. He spent more than a decade at the California Public Employees’ Retirement System, including four years as chief investment officer. Earlier in his career, he served as chief deputy treasurer and deputy treasurer in the California State Treasurer’s Office.
Eliopoulos' past and current board affiliations include the U.S. Real Estate Roundtable, the Sustainability Accounting Standard's Board's Investor Advisory Group, the Alliance for Southern California Innovation Advisory Council and the Pensions Real Estate Association – where he served as the board chair from 2012 to 2014. Eliopoulos currently serves on the Pacific Pension Institute board.
Eliopoulos received his bachelor's degree, magna cum laude, with honors from Dartmouth College and holds a juris doctor degree from the University of Virginia.
Super nice guy, sharp and experienced. I'm happy he landed at Prologis in this important strategic role.
Alright, this is another great deal for La Caisse, partnering up with a premier global logistics operator for a second time to invest in Europe.
La Caisse is putting up most of the money for this new joint venture, will own a 70% stake and Prologis will operate these assets and own a minority stake (30%).
Why is Prologis, a publicly listed company, doing this joint venture with La Caisse?
Because it gains access to serious capital from a great partner to expand its operations and increase its earnings without having to go to the market to issue debt.
Earlier this week, I discussed how La Caisse committed A$1.0 billion ($693 million) to a subordinated hybrid securities offer by NextDC, an Australian publicly listed digital infrastructure company that operates data centres.
What does La Caisse gain by doing these deals with publicly listed, established companies?
It gains access to premier operators/ partners who can put capital to use and they can invest in scale.
Doesn't La Caisse already have exposure to industrial properties throughout Europe.
It does but this joint venture will allow it to gain access to even more great assets there.
As Rana Ghorayeb, Executive Vice-President and Head of Real Estate at La Caisse states in the press release:
“We have seen Prologis’ best-in-class capabilities to drive returns firsthand through our partnership in Brazil, and we are building on our combined strengths to create a truly consolidated pan-European platform. This joint venture brings together Prologis’ deep hands-on operational expertise and our vision to actively transform assets to enhance long-term value. Together, we will gain greater exposure to the European logistics sector, strengthen execution, and maximize the performance and scale of our logistics portfolio.”
The fundamentals remain very strong for logistics assets throughout Europe and the war in Iran is hopefully coming to an end (it was a big threat to European economies).
Alright, that's all from me. Another great deal for La Caisse this week.
Let me take this opportunity to wish those celebrating a happy Orthodox Easter this weekend.
Below,Prologis CEO Dan Letter joins Bloomberg Businessweek Daily to discuss the state of global logistics and shipping as geopolitics and associated risk impacts the firm's customer base. However, Prologis is optimistic about its data center business.
Letter says the company's strong relationship with hyperscalers is ongoing, bolstering "a fortress of a balance sheet" as Prologis continues to secure longer-term power capacity. Letter speaks with Carol Massar and Tim Stenovec.
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