No slowdown for Prologis in 2013

The company also predicts further demand for BTS facilities, a greater number of pre-lease contracts, an increase in leasing periods from 3 to 5 years, stable or rising rent rates (depending on the market), as well as the growing importance of e-commerce tenants. The company’s strategy is to focus on increasing the occupancy rate across its entire portfolio from 90.8 pct to 95 pct by the end of 2013, as well as to concentrate its investment in its main markets (Chorzów, Wrocław, Stryków and Poznań), selling land that is not part of its business development strategy, and optimising its portfolio by selling off selected properties. Prologis has also released its 2012 results for the CEE market. The company leased nearly 1.2 mln sqm in the CEE region with 60 pct of these transactions in Poland. It signed leases for a total of 427,000 sqm and contract extensions for 474,000 sqm. Current vacancy levels across the region decreased from 10 pct in 2011 to 8 pct by the end of 2012. Its largest deals included DHL (48,600 sqm) in Prologis Park Dąbrowa, Solid Logistics (27,100 sqm) in Prologis Park Teresin and Rohlig Suus Logistics (25,500 sqm) in Prologis Park Janki. Contract renewals included Tesco (86,300 sqm in Prologis Park Galanta-Gáň, Slovakia) and Geodis Calsberson (29,100 sqm) in Prologis Park Budapest-Budaors in Hungary. Last year Prologis also began construction work on a 6,800 sqm extension of Prologis Park Janki for Rohlig Suus Logistics, a 17,800 sqm BTS facility for a household appliance distributor in Prologis Park Wrocław V and a 24,500 sqm speculative building in Prologis Park Bratislava, which was completed in Q3 2012. Prologis also finished construction work on another speculative building in Prologis Park Janki with an area of nearly 18,500 sqm. Over 2012 the company sold a total of 69 ha of land, including three plots in Poland and two in the Czech Republic. Prologis also sold 210,900 sqm of distribution space in six parks in Warsaw, Wrocław, Będzin and Sosnowiec to Hines Global REIT Poland Logistics Holdings I LLC, as well as 19,900 sqm and 7 ha in Rawa to Pepco, one of the tenants in Prologis Park Rawa. The total value of the sales came to EUR 125.4 mln. Prologis also transferred three facilities in Poznań with a total of 50,500 sqm to the Prologis European Properties Fund II at a price of EUR 22.3 mln.