Connected Environments

Where Real Estate and Infrastructure Meet
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A Feat of Logistics

Joining forces with Prologis to serve The Brazilian market

In early 2019, we signed a deal with Prologis, Inc., the global leader in logistics real estate. This joint venture, created to develop and operate logistics properties in Brazil, currently has five logistics parks in São Paulo and three in Rio de Janeiro. By the end of 2020, its operating properties are expected to have gross leasable area of 800,000 square metres; in addition, it has a large land bank for future development.

This initial US$880-million investment is part of our strategy of focusing on industrial and logistics assets in cities with rapidly growing e-commerce markets. And it’s clear that Brazil has the wind in its sails in this respect. “Brazil currently has some of the strongest logistics real estate customer demand in the world,” says Gene Reilly, Prologis’ Chief Investment Officer (and formerly the company’s CEO of the Americas). “This demand has been driven primarily by the consumer products segment, specifically the e-commerce sales channel. We provide the type of product these customers want: strategically located facilities built to international design and construction standards.”

E-commerce and much more

Having a local presence — as we have since 2017, when we opened our office in São Paulo — allows us to adapt our offering to the needs of the local economy and communities. Making the most of this approach by joining forces with Prologis simply made sense; it’s a world class partner with the same values as ours. “This partnership also enables us to develop synergies and relationships between Prologis and our retail platform Ancar Ivanhoé, because their customer bases are similar,” said Adriano Mantesso, Managing Director, Latin America. “Working together allows us to serve our customers more effectively, which give us a competitive edge.”

Having large retail distribution centres focused on getting products to stores or to smaller intermediate centres has allowed us to better serve Brazil’s urban population, as has the advent of e-commerce giant Amazon, which opened its first direct fulfillment centre in South America at our Cajamar facility in the São Paulo market.

But, as always, sustainability on multiple fronts remains a priority. For example, our modern facilities have larger truck staging areas and higher ceilings for maximum storage, as well as natural lighting and efficient ventilation, which contribute to healthy conditions for employees. We want to provide a safe and healthy workplace, while working more effectively and intelligently for our customers.

Renters’ paradise

Greenford Quay, London

Greater London has had a housing shortage for a number of years, and the Greenford area of West London is no exception. In partnership with Greystar, Ivanhoé Cambridge will develop a large-scale mixed project in Greenford over the next few years, providing more than 2,000 housing units on a former industrial site. It’s a perfect fit with our vision of the “Neighbourhoods of Tomorrow.”

The Greenford Quay project is 30 minutes from downtown by public transit and covers more than 20 acres, crossed by a canal. It won’t be just a residential development; it will also include a grocery store, a café, a restaurant, workspaces, a school, and health and fitness centres. The vast majority of the housing will be rental units, including more than 400 at below-market rents, under an affordable housing program negotiated with the city.

Major acquisition by Piret

18103 Trans-Canada Highway

Amid high demand for Montreal’s industrial spaces, Pure Industrial Real Estate Trust (PIRET)—which we co-own with Blackstone—acquired an 11-property industrial portfolio from Healthcare of Ontario Pension Plan (HOOPP). The properties, comprising 1.5 million square feet, include warehouses, logistics buildings and distribution centres, all within the Greater Montreal Area.

Future operations

Logistics projects across England

In partnership with PLP, we have expanded our logistics portfolio in England through the acquisition of superior-quality development projects in Leeds, Sheffield, Crewe and Knowsley. These projects, slated for delivery in 2020 and 2021, will allow Ivanhoé Cambridge and PLP to develop more than 2.6 million square feet of logistics space on 130 acres. The four projects are in prime logistics markets with excellent transport connections that will help us maximize performance.

Serving southern India

Logistics parks in Chennai, India

One of the world’s fastest-growing economies has a new player: the Ivanhoé Cambridge partner LOGOS made its first acquisitions in India, after launching its operations in the country. Together, Mappedu Logistics Park and Mahindra World City comprise 2.2 million square feet of quality logistics facilities.