Prologis Reports Second Quarter Performance in Central and Eastern Europe
Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, today announced its second quarter activity in Central and Eastern Europe (CEE).
The company leased more than 400,000 square metres of distribution space, an increase of more than 7 percent over the same period last year. Demand continues to be driven by reconfiguration of the supply chain and e-commerce.
Prologis ended the second quarter with 94.8 percent occupancy of the company’s operating portfolio, confirming the stabilisation of the market and strengthening of Prologis’ position in CEE.
At the end of the quarter, the company’s operating portfolio was 4.35 million square metres. Adding developments, the portfolio was 4.52 million square metres.
Notable transactions included:
|New leases (Q2 2016)|
|34,200 sq m||Sportisimo||Prologis Park Prague-Rudna, Czech Republic|
|20,500 sq m||Mall.cz||Prologis Park Prague-Jirny, Czech Republic|
|17,200 sq m||Grupa Allegro||Prologis Park Błonie, Poland|
|12,000 sq m||Food Producer||Prologis Park Wrocław, Poland|
|Renewals (Q2 2016)|
|20,800 sq m||Fiege||Prologis Park Budapest-Harbor, Hungary|
|12,800 sq m||Yusen Logistics||Prologis Park Wrocław IV, Poland|
|11,700 sq m||OST SPED||Prologis Park Wrocław, Poland|
|11,100 sq m||Raben Logistics||Prologis Park Nove Mesto, Slovakia|
During the quarter, Prologis commenced construction of four distribution facilities, totalling more than 123,000 square metres, three of which are build-to-suit (BTS) facilities. The fourth one is a speculative facility, totalling 21,000 square metres, which is already 23 percent pre-leased. Including development starts in the first quarter, the company currently has nine buildings under construction, totalling 217,000 square metres. The majority of the developments are in existing Prologis parks, located in core logistics markets.
|Development Starts (Q2 2016)|
|34,200 sq m||BTS for Sportisimo||Prologis Park Prague-Rudna, Czech Republic|
|22,200 sq m||BTS for a clothing company||Prologis Park Stryków, Poland|
|21,000 sq m||Speculative — 23-percent pre-leased||Prologis Park Budapest-Sziget, Hungary|
|11,740 sq m||BTS for a freight forwarder||Prologis Park Stryków, Poland|
“The second quarter of 2016 shows that the logistics real estate market in Central and Eastern Europe is growing steadily and offering encouraging prospects. There is a growing demand for logistics space and, consequently, the occupancy rate across our portfolio is on the increase, reaching nearly 95 percent,” said Martin Polak, senior vice president and regional head for Prologis CEE. “The expected growth in e-commerce and the consequent increase in logistics space occupancy rates has become a reality. A growing number of our customers are companies from that sector, which speaks of the quality and suitable location of Prologis facilities.”
With its active engagement in four CEE countries and a portfolio totalling 4.3 million square metres, Prologis is the leading provider of distribution facilities in Central and Eastern Europe (as of 30th June 2016).
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of June 30, 2016, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 666 million square feet (62 million square metres) in 20 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,200 customers across two major categories: business-to-business and retail/online fulfillment.
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