Prologis plumps out portfolio

Not speculating for long

Prologis has begun the development of a 21,000 sqm speculative warehouse project at Prologis Park Sziget-Budapest. According to the developer, this will be the first speculative logistics building on the Hungarian market since 2008. The completion of the project is scheduled for Q3 2016. The new hall, building 7, will feature a pioneering docking system with 46 docks and three drive–in gates. “This facility will offer Prologis’ customary exceptional property management for our tenants and a practical approach, combining local expertise with global best practices. Together with the increasing rents at Prologis Park Budapest-Sziget, it was the 98 pct occupancy of our Hungarian portfolio and our high customer retention rate that has given us the confidence to carry out this development,” declared László Kemenes, the senior vice-president and country manager of Prologis Hungary.

BMW in the centre

Meanwhile, Prologis has officially opened a 25,414 sqm BTS warehouse for BMW Group at Prologis Park Bratislava. The DC9 building will serve as a spare parts distribution hub for the firm’s Central European operations. It features LED lighting, temperature control, perimeter lighting, surveillance, IT systems and a dangerous goods room (ADR). “We continue to be in demand from automotive firms throughout the CEE region, who often require tailored facilities to suit their business operations,” said Martin Polák, the senior vice-president and regional head of Prologis Central and Eastern Europe. The park, 24 km east of Bratislava city centre, currently comprises 13 halls with more than 320,000 sqm of production and distribution space.

More warehouse space near Prague

In the Czech Republic consumer goods and electronics store Mall.cz has leased an additional 20,500 sqm at Prologis Park Prague-Jirny. The BTS building is scheduled for completion in Q3 2016. Situated adjacent to Mall.cz’s existing 31,000 sqm BTS facility, which was delivered in 2015, the new building, DC5B, will be specifically customised for e-commerce distribution requirements. Marek Muller, the director of development and leasing at Prologis Czech Republic, has commented: “This new agreement follows a recently delivered 32,500 sqm BTS expansion for another customer at the same park and reaffirms our strategy regarding location and property management.” “Having been given the option to expand later when we signed the agreement for our existing building, we decided to go ahead with it largely due to our satisfaction with the park’s location,” added Oldrich Petranek, the international operations director of Mall.cz. Prologis Park Prague-Jirny currently comprises 255,000 sqm of distribution space. Prologis now has more than 985,000 sqm of logistics and industrial space in the Czech Republic (as of March 31st, 2016).

Warehouses welcome in Dàbrowa

The developer has also extended two leasing agreements for 29,000 sqm at Prologis Park Dąbrowa. The transactions include a 24,272 sqm renewal with logistics services provider Fiege, and a 2,735 sqm renewal and a 1,907 sqm expansion with GTX Hanex Plastics, a leader in the Polish packaging market. The deal was brokered by Cushman & Wakefield. “The decision to renew and expand our lease agreement was strongly influenced by the proximity of our factory as well as by the tailor-made solutions proposed by Prologis. The electrical system installed in our unit has been adapted for increased energy consumption, so that we can expand our business even more effectively,” said Marcin Pachalski, the operations director of GTX Hanex Plastics. Prologis Park Dąbrowa comprises ten buildings totalling 144,000 sqm. The park is located in Dąbrowa Górnicza, in north-eastern Silesia, and has convenient access to several key transport routes, including the S1 express road, which provides a direct connection to the A4 motorway.

Summing up the sheds

In the first quarter of this year, Prologis Europe’s portfolio amounted to 15.4 mln sqm, up from 14.6 mln sqm a year ago. The company sold EUR 214 mln of properties in Spain, the UK and the Netherlands over the course of Q1. The warehousing developer also acquired EUR 30 mln of buildings with a total of 52,600 sqm, and five plots with 41 ha across Europe. In Q1 2016 Prologis Europe’s properties were 95 pct occupied. At the same time, the company signed new leasing agreements for almost 260,500 sqm. “Customer sentiment remains strong in the UK and Northern Europe. It is also improving in Central, Eastern and Southern Europe,” said Ben Bannatyne, the president of Prologis Europe. The most notable lease contracts signed in Q1 included an 18,000 sqm 3PL Linemart lease in Prague and a 7,100 sqm deal with an express shipping service company in Chorzów.