Third Quarter Leasing Activity

Prologis CEE leased more than 387,000 square metres of space, a 57-percent increase over the same period in 2013.Transactions in Poland accounted for more than 38 percent of all lease agreements signed in the region. The company signed new lease agreements totaling 178,000 square metres and lease renewals of 173,000 square metres, with the balance short-term agreements.

The vacancy rate in Prologis CEE’s portfolio was7.7 percent at the end of the third quarter.

Notable transactions included:

New Leases
Space (m²)     Customer                      Location
22,080            syncreon                      Prologis Park Budapest-Gyal, Hungary
16,147            Logistics E van Wijk     Prologis Park Bucharest A1, Romania
12,681            Alza                              Prologis Park Prague-Uzice, Czech Republic
7,473              Leader Logistics           Prologis Park Wrocław III, Poland

Lease Renewals
25,433     Calberson                       Prologis Park Bucharest A1, Romania
16,911     Volkswagen Group          Prologis Park Poznań II, Poland
12,692     VF Czech Services           Prologis Park Prague-Uzice, Czech Republic
11,052     Hi Logistics                      Prologis Park Wrocław IV, Poland
10,914     dm-drogeriemarkt           Prologis Park Bratislava, Slovakia

Third Quarter Acquisitions and Developments

Prologis acquired 25 buildings totaling more than 324,000 square metres in Poland, Slovakia, the Czech Republic and Hungary. These assets were acquired at a significant discount to replacement costs.

In addition, the company completed four buildings totaling 70,500 square metres in the Wrocław, Szczecin and Bratislava markets. Completions included the first “Small Business Units” facility of18,200 square meters at Prologis Park Wrocław III, which is already 75 percent preleased.

At the end of September, Prologis announced it would begin the construction of a 31,190 square metre build-to-suit (BTS) facility for ČERVA at its recently acquired site at Prologis Park Prague-Airport. Another 30,000 square metre speculative facility is under construction at the same park.

“Our third-quarter activity reflects strong recovery markets such as Prague, Poznań and Wrocław while rental growth has yet to materialize in our other markets in CEE,” said Ben Bannatyne, managing director and regional head, Prologis Central and Eastern Europe. “Given the economic climateand opportunities for accretive acquisitions, our local teams provide a competitive advantage in sourcing regional investments.”

With its active engagement in five countries across the region (Poland, Czech Republic, Hungary, Slovakia and Romania) and a portfolio of 4.1 million square metres, Prologis is the leading provider of distribution facilities in Central and Eastern Europe (as of 30 September 2014).