ProLogis, one of the world’s largest warehouse owners and developers, will sell its operations in the mainland and its interest in its Japanese property funds for US$1.3bn to raise cash to pay down debt, the company said on Tuesday.

ProLogis, whose shares jumped nearly 15% on the news, said it expects to record a net loss equal to 4% to 5% of the book value of the assets to be sold.

The buyer is GIC Real Estate, the real estate investment company of the Government of Singapore Investment Corp, a sovereign wealth fund. GIC RE will assume the liabilities of the assets, ProLogis said.

South China Morning Post