Warsaw (20 July 2017) – Prologis, Inc., the global leader in logistics real estate, today announced its activity in Europe for the first half of 2017.
During the first half of 2017, the company signed leases and renewals on 2.4 million square metres and started construction on 13 buildings totaling 393,455 square metres. New developments include:
- 36,672 square metres for Coolblue at Prologis Park Tilburg, South Netherlands
- 27,150 square metres for Logiters (ID Logistics Group) at Prologis Park Penedes, Spain
- 16,199 square metres for Textile House at Prologis Park Bratislava, Slovakia
- 30,240 square metres for Sainsbury’s at Prologis Park Pineham, UK
By 30 June 2017, the company owned or had investments in properties and development projects in Europe totaling 16.9 million square metres. Occupancy was at 96.2 percent.
“Demand in Europe in the first six months of the year was at its highest level in 10 years,” said Ben Bannatyne, president of Prologis Europe. “We are seeing steady demand from customers across a broad range of sectors. Companies seeking to optimize their distribution operations are restructuring supply chains and location is playing an increasingly important part in their real estate decisions.”
In response to ongoing low supply of Class-A facilities across all markets, Prologis acquired land to extend logistics parks in prime locations, including Prologis Park Bratislava, Slovakia; Prologis Park Tilburg, South Netherlands; and Prologis Park Hemel Hempstead in the UK’s London and South East market.
In the first half of the year, Prologis acquired 138 hectares of development land in Europe, as well as a portfolio of five fully let buildings totaling 77,000 square metres in Sweden. During the same period, the company disposed of 397,000 square metres in buildings across Europe, along with 32 hectares of land.
Rental growth continued in the first six months of 2017, both in supply constrained markets across Northern Europe and the UK as well as in recovering markets such as Italy, Spain and Hungary.
The strongest markets for Prologis Europe during the period were the UK, the Netherlands, Germany, Italy, Slovakia, Stockholm, Barcelona, Prague and Budapest.
Prologis in Central and Eastern Europe
During the first half of 2017, Prologis signed leases and renewals totaling 760,000 square metres and completed 12 buildings totaling more than 240,000 square metres, including seven build-to-suit (BTS) facilities. The company commenced construction of two BTS buildings totaling more than 23,000 square metres.
At the end of June 2017, Prologis CEE operating portfolio totaled 4.61 million square metres. With the addition of new developments, the portfolio reached 4.72 million square metres. Occupancy was stable at 95.4 percent.
Prologis also acquired 81 hectares of land in CEE and disposed of 117,000 square metres in buildings, along with 24 hectares of land.
ABOUT PROLOGIS
Prologis, Inc. is the global leader in industrial real estate. As of September 30, 2015, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 670 million square feet (62 million square meters) in 21 countries. The company leases modern distribution facilities to more than 5,200 customers, including third-party logistics providers, transportation companies, retailers and manufacturers.
FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which Prologis operates, management’s beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact Prologis’ financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of properties, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust (“REIT”) status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments in our co-investment ventures and funds, including our ability to establish new co-investment ventures and funds, (viii) risks of doing business internationally, including currency risks, (ix) environmental uncertainties, including risks of natural disasters, and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by Prologis under the heading “Risk Factors.” Prologis undertakes no duty to update any forward-looking statements appearing in this document.
MEDIA CONTACTS
Marta Tęsiorowska
Vice President Marketing & Communications
Prologis Central & Eastern Europe
Direct: +48 22 218 36 56
Email: [email protected]&
Marta Zagożdżon
PR Director, ConTrust Communication
Direct: + 48 605 073 929
E-mail: [email protected]