Prologis Leases One Million Square Metres

Prologis, Inc., the leading global owner, operator and developer of industrial real estate, today announced that it leased more than 1.16 million square metres of industrial distribution space in Central & Eastern Europe (CEE) during 2012, 60 percent of which was in Poland.

Leasing Activity

According to data published by CBRE in January 2013, Prologis held a 38 percent share of the industrial real estate leasing market in the CEE region in 2012.

Prologis signed new leases covering 427,000 square metres and renewed leases totalling more than 474,000 square metres. The remaining activity was covered through short-term agreements.

As a result, Prologis reduced its CEE vacancy rate to 8 percent in 2012, down from 10 percent in 2011.

Development

In 2012, Prologis began construction of three new facilities totalling 49,000 square metres, including: a 6,800 square metre extension for Rohlig Suus Logistics at Prologis Park Janki; a 17,800 square metre built-to-suit project for domestic appliances distributor at Prologis Park Wrocław V; and a 24,500 square metre speculative build at Prologis Park Bratislava which was delivered in Q3 2012. Prologis also completed another speculative facility totalling nearly 18,500 square metres in Poland.

Land Monetization

Through 2012, Prologis monetized 9.6 hectares of land through development and disposed of 69 hectares of non-core land, including three parcels in Poland (Warsaw, Rawa, Września) and two in the Czech Republic (Prague and Stenovice).

Facilities Dispositions & Contributions

As part of its global strategy to realign its portfolio, Prologis disposed of 230,800 square metres of distribution space across six parks in Warsaw, Wrocław, Będzin, Rawa and Sosnowiec, Poland. The aggregate sales price for the assets was EUR 125.4 million. Prologis also completed the contribution of three high-quality facilities in Poland to Prologis European Properties Fund II for EUR 22.3 million. 

Ben Bannatyne, managing director, Prologis Central & Eastern Europe, said:“2012 was another strong year for Prologis in the CEE, with leasing activity exceeding one million square metres for the third year running. Our customers tell us they value the quality of our facilities, our flexible approach—providing ready-to-lease solutions— and the technical expertise we have to offer. This is a winning formula and I am very proud of our achievements in 2012.”

Looking to 2013, Mr. Bannatyne added: “Driven by steady demand for Prologis’ high-quality distribution facilities, we will continue to make full use of our land bank as we develop in the most strategic locations, while focusing on new investment opportunities in key global markets.”

With its active engagement in five countries across the region (Poland, Czech Republic, Hungary, Slovakia, Romania) and a portfolio totalling more than 3.5 million square metres, Prologis is the primary operator of distribution facilities in Central & Eastern Europe (as of Dec. 31, 2012).