Prologis, Inc., the global leader in industrial real estate, today announced its 2014 business activity in Central and Eastern Europe (CEE).
Acquisitions and Dispositions
In 2014, Prologis CEE acquired 27 facilities totalling 390,000 square metres for approximately €225 million, a significant discount to replacement costs.
Prologis CEE also acquired 33 hectares near Prague airport; two facilities totalling 61,110 square metres are now under construction at the site. The company disposed of one 20-hectare parcel of land in the Polish city of Gdańsk.
Development Starts
Last year, Prologis CEE began construction of nine buildings totalling 192,700 square metres.
Space (sq m) Type Location
31,730 BTS for Internet Mall Prologis Park Prague-Jirny, Czech Republic
31,190 BTS for Cerva Prologis Park Prague-Airport, Czech Republic
29,920 Speculative facility Prologis Park Prague-Airport, Czech Republic
26,860 Speculative facility – 80% let Prologis Park Wrocław V, Poland
23,660 Speculative facility Prologis Park Bratislava, Slovakia
18,240 Speculative SBU facility – 100% let Prologis Park Wrocław III, Poland
12,340 BTS for automotive industry company Prologis Park Prague-Jirny, Czech Republic
11,230 BTS for Prime Cargo Prologis Park Szczecin, Poland
7,540 BTS for DB Schenker Prologis Park Budapest-Sziget, Hungary
Completed Developments
Prologis CEE delivered seven facilities in 2014 totalling 135,000 square metres. The developments included a speculative small business units (SBU) facility at Prologis Park Wrocław III, which offers office and distribution space starting at 650 square metres. The facility is fully leased now.
“The SBU facility in Wrocław is the first building of that type in the Prologis CEE portfolio. Our decision to develop the facility was based on a high level of demand from small businesses, and the decision has proved right,” said Ben Bannatyne, managing director, regional head, Prologis Central and Eastern Europe. “The successful leasing of the space and continued demand from customers for small-space buildings has encouraged us to introduce the idea to other locations.”
Space (sq m) Type Location
35,000 BTS for Eko Holding Prologis Park Wrocław V, Poland
26,860 Speculative facility – 80% let Prologis Park Wrocław V, Poland
22,000 Speculative facility – 100% let Prologis Park Prague D1 West, Czech Republic
18,240 Speculative SBU facility – 100% let Prologis Park Wrocław III, Poland
13,980 BTS for Tomra Prologis Park Bratislava, Slovakia
11,230 BTS for Prime Cargo Prologis Park Szczecin, Poland
7,540 BTS for DB Schenker Prologis Park Budapest-Sziget, Hungary
Leasing Activity
In 2014, Prologis CEE leased more than 1.8 million square metres of logistics space in its overall portfolio, including operating properties, developments and value-add acquisitions, which is the best result since the company established itself in the region in 1997. The company signed new lease agreements totalling 570,000 square metres and lease renewals of 958,000 square metres, with the balance short-term agreements. Transactions in Poland accounted for 45 percent of all lease agreements.
Prologis CEE ended the year with 93.1 percent occupancy in its overall portfolio, excluding facilities under development.
Notable transactions included:
New lease agreements
Space (sq m) Customer Location
32,100 Cerva Prologis Park Prague-Airport, Czech Republic
31,730 Internet Mall Prologis Park Prague-Jirny, Czech Republic
26,630 DB Schenker Prologis Park Budapest-Sziget, Hungary
22,080 Syncreon Prologis Park Budapest-Gyal, Hungary
22,000 DHL Prologis Park Prague D1 West, Czech Republic
20,600 HI Logistics Prologis Park Wrocław V, Poland
Lease renewals
91,300 Tesco Prologis Park Galanta-Gan, Slovakia
38,000 Procter & Gamble Prologis Park Sochaczew, Poland
35,000 Tesco Prologis Park Bratislava, Slovakia
34,000 Viva Manufacturing Prologis Park Teresin, Poland
21,500 Calberson Prologis Park Bucharest A1, Romania
20,600 UTi Prologis Park Budapest-Sziget, Hungary
Sustainability
In line with Prologis’ global strategy for sustainable development, all new buildings undergo a BREEAM accreditation process. In 2014, five facilities constructed by Prologis were BREEAM accredited” good” or “very good”:
• Buildings 3 and 4: Prologis Park Wrocław V – “good”
• Building 8: Prologis Park Bratislava – “very good”
• Building 7: Prologis Park Bratislava – “good”
• Building 4: Prologis Park Prague D1 West – “very good”
“We are very pleased with our performance last year, which led to our regional overall portfolio growing by 525,000 square metres to more than 4.1 million square metres,” Bannatyne said. “The Czech Republic, Slovakia and certain submarkets in Poland, such as Wrocław, Katowice and Poznań, are characterised by a high level of demand, reasonable market rent and limited supply. The Hungarian market has also improved and the occupancy rate in our portfolio has increased to 98 percent.”
Bannatyne added, “We believe this trend will continue in 2015 and therefore expect that speculative facilities in these markets will be well-timed. We will continue to focus on increasing occupancy levels in our current portfolio and monetising our land bank in core markets in Poland, the Czech Republic, Slovakia, Hungary and Romania.”
With its active engagement in five CEE countries and a portfolio totalling more than 4.1 million square metres (as of 31 December 2014), Prologis is the leading owner and manager of distribution facilities in Central and Eastern Europe.
Prologis
