Prologis busy selling, leasing, building

The building has been merged into the neighbouring Prologis Park Prague-Rudna logistics complex, while its name has been changed to DC18. It is currently 52 pct leased to Sportisimo. As a result of the transaction, Prologis Park Prague-Rudna has been expanded by 14 ha and a 28,000 sqm warehouse. Prologis Park Prague-Rudna currently comprises 18 buildings and offers 191,000 sqm of distribution space. The park is located 20 km from the centre of Prague on the D5 motorway. Prologis has also sold some of its assets to Norwegian sovereign wealth fund manager Norges Bank Investment Management. The transaction includes a 50 pct stake in a EUR 310 mln logistics portfolio of eight buildings in Poland, the UK and France, comprising 260,000 sqm of warehouse space in total. Three of the buildings, which comprise a total of 71,000 sqm, are situated in Prologis Park Wrocław V, while the fourth is an 18,500 sqm building forming part of Prologis Park Wrocław III.
The remaining four properties are located in Daventry, Minworth and Kettering in the UK and Vémars, France. The EUR 155 mln deal, which was signed and completed in mid-May, did not include any debt financing. Prologis is set to continue to asset manage the portfolio on behalf of the joint venture. In the Wrocław region, the US-based developer currently holds four logistics parks that comprise a total of app. 16 buildings. Established in 2011, Norges Bank Investment Management belongs to the Norwegian central bank. In 2013, Prologis set up
a EUR 2.4 bln 50-50 joint venture with NBIM and Prologis European Logistics Partners Sàrl (PELP).

Happy with investment decisions

The key figures for Prologis in the first half of the year were: over 900,000 sqm leased, 97,000 sqm acquired, 97,500 sqm under construction and 130,000 sqm completed. “We made some good investment decisions, as evidenced by our leased space volume of almost 1 mln sqm, the high portfolio lease rate of 93.1 pct and a customer retention rate of 86.3 pct. Our customers have confidence in the quality of our services and in the user-friendly plans and locations of our parks,” commented Ben Bannatyne, the managing director of Prologis Central and Eastern Europe. In H1 the company’s customers leased 10 pct more space in Prologis parks than over the same period last year. The new lease agreements totalled 324,000 sqm, while lease renewals amounted to almost 411,000 sqm. The remaining 170,000 sqm comprised short-term agreements. Notable transactions included the 48,800 sqm lease of new and additional space at Prologis Park Prague-Jirny with Globus, a 26,500 sqm lease at Prologis Park Poznań II with an e-commerce company, a 15,900 sqm lease at Prologis Park Budapest M1 with an electronics manufacturer and a 12,550 sqm lease at Prologis Park Poznań II with Solid Logistics.

More development and acquisitions

In the last six months Prologis CEE delivered five facilities totalling 130,000 sqm. These include 32,100 sqm at Prologis Park Prague-Airport for wholesale personal protective equipment supplier Červa, 31,730 sqm at Prologis Park Prague-Jirny for online consumer goods and electronics store Mall.cz, 30,000 sqm of speculative space at Prologis Park Prague-Airport, 23,600 sqm of speculative space at Prologis Park Bratislava and 12,350 sqm for an automotive services provider at Prologis Park Prague-Jirny. At the same time Prologis has begun the construction of four speculative developments and a build-to-suit facility, which together total 97,500 sqm. These include 29,000 sqm at Prologis Park Prague-Jirny for Globus, 27,650 sqm at Prologis Park Szczecin, 18,550 sqm at Prologis Park Wrocław V, 16,430 sqm at Prologis Park Bratislava and 5,885 sqm at Prologis Park Bratislava. Over the last six months, Prologis CEE has acquired six buildings totalling more than 97,000 sqm. These transactions included the M1 Business Park comprising 69,105 sqm across five buildings, located 23 km west of the Budapest city centre. The park has been renamed Prologis Park Budapest M1. “The first half of the year was successful for Prologis CEE. Our focus was to strengthen our portfolio based on strategic acquisitions and development projects in key logistics markets where state-of-the-art industrial space is in short supply,” added Ben Bannatyne. As the result of this development and the acquisitions the current Prologis portfolio in five Central and Eastern European countries comprises 4.3 mln sqm of logistics space.