Year of successes for ProLogis in the Czech Republic

ProLogis (NYSE: PLD), the leading global provider of distribution facilities, announced today a summary of the company’s 2010 results for the industrial space market in the Czech Republic and the CEE region.

ProLogis signed lease agreements for more than one million square metres of space in the whole region, including more than 257,000 square metres in the Czech Republic. ProLogis has never before leased so much space in the Czech Republic and the CEE region within a year.

Superior Leasing Results

ProLogis’ portfolio in the Czech Republic comprises six distribution parks totalling more than 605,000 square metres of warehouse space located in 26 buildings. Last year, ProLogis signed lease agreements for more than 257,000 square metres of modern warehouse space in the Czech Republic, which represents an increase by 126% of leased space as compared to 2009. This activity has given ProLogis a 30% market share in terms of the size of the all transactions completed in 20101.

New lease contracts included 162,400 square metres. In addition, ProLogis has extended lease agreements for more than 94,700 square metres.

Increased Occupancy

The increase in leasing activity for the industrial market decreased the available space in ProLogis’ Czech portfolio by more than 55% compared with the year 2009 and resulted in a higher occupancy rate of 85%. As the result of the great leasing activity ProLogis Park Pilsen-Stenovice and ProLogis Park Prague D1 West were fully leased. ProLogis distribution centers in Prague (D1 East and Jirny parks) have only single units still available for lease.

Build to Suit

ProLogis signed its first build-to-suit project in the Czech Republic at the end of 2010 with Globus, one of the largest hypermarket operators in the country. The 22,350-square metre of custom designed facility at ProLogis Park Prague-Jirny will serve as Globus’ Czech hub for temperature controlled logistics. Potential expansion of the building allows for the development of additional 25,000 square metres.

“In 2010, ProLogis’ strategy was to focus on customer satisfaction, reducing vacancy in our Czech portfolio, targeting build-to-suit opportunities and monetizing land,” said Mario Sander, market officer ProLogis for the Czech Republic and Slovakia. “The customer retention rate of more than 94% in 2010 proofs the trust of our customers in ProLogis’ services. The great results achieved in 2010 demonstrate that the company met all their objectives which resulted in a record year for the Czech team.”

ProLogis in the CEE

ProLogis is a leading provider of distribution facilities in Central and Eastern Europe and offers more than 3.7 million square metres of space located in 40 parks. Its operations in five regional markets – Czech Republic, Poland, Romania, Slovakia and Hungary – are co-ordinated from the company’s head office in Warsaw.

Last year, ProLogis leased more than one million of square metres throughout CEE, representing more than 40% market share in the region in terms of the size of the transactions completed in 2010. This was a record result in the history of the company going back thirteen years! New contracts have been concluded for a total of 488,300 square metres of warehouse and office space. The company has also renewed lease contracts for a total of 582,700 square metres.

2011 Objectives & Market Trends

“In 2011, we plan to further focus on leasing the remaining available warehouse space and on extending lease agreements with our existing clients,” – said Mr. Sander. “Our objectives will also include targeting pre-let opportunities, and other ways of monetizing our land bank.”

“Optimistic economic forecasts for Central and Eastern Europe are encouraging and will hopefully lead to further improvements in the market of modern distribution facilities for 2011” – said Ben Bannatyne, ProLogis Managing Director Central & Eastern Europe – “We expect a possible uptick in demand, generated mostly by companies in the logistic sector, and by the growing retailers and manufacturing companies. It is worth noting that due to the decreasing stock of available warehouse space, this year may be the last opportunity for our customers to capture industrial space at relatively low rent rates.”

About ProLogis

ProLogis is the leading global provider of distribution facilities, with more than 40 million square metres of industrial space in markets across North America, Europe and Asia. The company leases its industrial facilities to more than 3,800 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. For additional information about the company, go to http://www.prologis.com.