Prologis Announces Full Year 2015 Activity in Central & Eastern Europe
WARSAW – 15 February 2016 – Prologis, Inc., the global leader in industrial real estate, today announced full-year 2015 activity in Central and Eastern Europe (CEE).
The company leased 1.75 million square metres in 2015, which is similar to 2014’s record-breaking figure. New lease agreements accounted for 618,000 square metres and lease renewals for 860,000 square metres, with the balance short-term agreements. Demand continues to be driven by reconfiguration of the supply chain, trade and
Prologis ended the fourth quarter with a very high 95.4 percent occupancy of the company’s operating portfolio, confirming the stabilisation of the market and strengthening of Prologis' position in CEE. Importantly, Prologis achieved one of the highest customer retention rates in CEE in the company's history, amounting to 87 percent
at the end of 2015.
At year end, the company’s operating portfolio was 4.17 million square metres, an increase of 4 percent over the course of 2015, despite the disposal of Prologis Park Bucharest A1, which totalled 107,000 square metres. Adding developments and value-add acquisitions, the portfolio was 4.33 million square metres at the end of 2015.
Notable new leasing activity included:
- 29,000 square metres for Globus at Prologis Park Prague-Jirny
- 31,000 square metres for DHL at Prologis Park Prague-Jirny
- 26,500 square metres for an e-commerce company at Prologis Park Poznań II
- 25,400 square metres for a German automotive company at Prologis Park Bratislava
- 15,900 square metres with a global leader in design, manufacturing, distribution and aftermarket services at Prologis Park Budapest M1
“Our impressive customer retention and portfolio occupancy rates confirm our strategy, which focuses on selected markets, development and the highest quality of services,” said Martin Polak, senior vice president and regional head for Prologis CEE.
In 2015, Prologis started 10 developments in undersupplied markets across the region. Totalling 200,000 square metres, 46 percent of the development space was build-to-suit and 54 percent was speculative. The majority
of the developments were in existing Prologis parks located in core logistics markets.
Development starts included:
- 30,000 square metre build-to-suit facility for Pepco at Prologis Park Rawa
- 29,000 square metre build-to-suit facility for Globus at Prologis Park Prague-Jirny
- 27,650 square metres speculative facility at Prologis Park Szczecin (DC3)
- 25,400 square metre build-to-suit facility for a German automotive company at Prologis Park Bratislava
- 19,200 square metre speculative facility at Prologis Park Bratislava (10B)
In 2015, Prologis delivered nine facilities, including four buildings started and completed in the same year, totalling 197,000 square metres. Completed developments included:
- 46,000 square metres in three speculative facilities at Prologis Park Bratislava
- 31,700 square metres for Mall.cz at Prologis Park Prague-Jirny
- 31,200 square metres for Červa at Prologis Park Prague-Airport
- 30,000 square metres of speculative space at Prologis Park Prague-Airport (DC1)
- 27,650 square metre speculative facility at Prologis Park Szczecin (DC3)
In 2015 Prologis acquired six buildings, totalling 97,000 square metres, and 14 hectares of land in the Czech Republic and Hungary. These acquisitions were in line with the Prologis strategy of investing carefully in global markets. During the year Prologis sold portfolio in Romania totalling 107,000 square metres.
For eight years Prologis has been following a strategy in the area of sustainable construction, with all newly-constructed buildings undergoing BREEAM accreditation. In 2015, six Prologis facilities received high scores in the BREEAM accreditation process:
- “Excellent” for Prologis Park Prague-Airport DC1, a speculative facility totalling 29,920 square metres
- “Excellent” for Prologis Park Prague-Jirny DC7, a build-to-suit production facility totalling 12,340 square metres for Demoautoplast
- “Very good” for Prologis Park Prague-Airport DC2, a build-to-suit facility totalling 31,190 square metres for Červa
- “Good” for Prologis Park Prague-Jirny DC5, a build-to-suit facility totalling 31,730 square metres for Mall.cz
- “Good” for Prologis Park Wrocław V DC5, a speculative facility totalling 26,764 square metres
- “Good” for Prologis Park Budapest-Sziget DC6, a build-to-suit facility totalling 7,650 square metres for
- DB Schenker
“We expect that demand in 2016 will be stable and result in further steady development of the industrial real estate market in the whole region” Polak added. “The investment level should also remain constant, with speculative facilities at least already 30 percent pre-leased before construction starts. A dynamic increase in e-commerce, which is currently the fastest growing group of customers, combined with further expansion of the retail and automotive sectors, will be driving demand this year”.
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 31 December 2015).
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.
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.
Vice President Marketing & Communications
Prologis Central & Eastern Europe
Direct: +48 22 218 36 56
Email: [email protected]&
PR Director, ConTrust Communication
Direct: + 48 605 073 929
E-mail: [email protected]