ProLogis (NYSE: PLD), a leading global provider of distribution facilities, announced today it has signed four development agreements during the first quarter in Europe for which it will provide development management services and generate project management income.
“The flexibility of our development strategy enables us to provide development management services, leveraging our knowledge and expertise to further meet our customers’ needs,”said Philip Dunne, ProLogis president in Europe. “Our approach is to provide development management services for third parties that want to own their facilities, which helps us generate fee income without requiring incremental capital investment.”
Recent ProLogis development services activity includes projects in:
Erfurt, Germany, where ProLogis will construct a 67,500-square-meter distribution facility for GIEAG (Gewerbe Immobilien Entwicklungs AG), a commercial real estate developer and asset manager. The building has been preleased to EUROGATE Warehousing & Distribution GmbH, which will use the space to provide third-party logistics services to Panasonic. GIEAG owns the land used for this development, and will maintain full ownership of the facility upon construction completion.
Paris, France, where ProLogis will construct a 32,000-square-meter distribution facility for a French industrial company. In addition, ProLogis has sold the company seven hectares of land located at ProLogis Park Vemars for the development of this facility, which will be owned in full by the customer upon construction completion.
Werne, Germany, where ProLogis will construct a 16,900-square-meter distribution facility for GIEAG. The building has been preleased to NextPharma, a leading European service provider to the pharmaceutical and biotechnology industries. GIEAG owns the land used for this development, and will maintain full ownership of the facility upon construction completion.
Stockholm, Sweden, where ProLogis will construct a 6,900-square-meter distribution facility for Svensk Fastighetsfond AB (SFF), an independent real estate investment company. The building has been preleased to CWS-boco, a leading service provider to the textile industry. SFF owns the land used for this development, and will maintain full ownership of the facility upon construction completion.
Dunne added: “These transactions reinforce ProLogis’ market leadership in industrial real estate development, and our ability to utilize core competencies while adapting to current market conditions. We are an experienced developer and are pleased to provide these companies with high-quality facilities and development management services that will satisfy their distribution needs.”
ProLogis has a proven track record for best-in-class industrial development. As of December 31, 2009, the company has developed more than 300 million square feet (27 million square meters) of ProLogis-owned facilities, and has managed more than $1 billion of project development for its customers. With more than 10,000 acres (4,000 hectares) available for development worldwide and a wide range of development services, ProLogis has the ability to meet its customers specific industrial development needs throughout North American, Europe and Asia.