Prologis has summarized its real estate market activity for the first half of the year in Central and Eastern Europe.
Acquisitions
Pursuing an active investment policy in Central and Eastern Europe over the last six months, Prologis purchased six buildings with a total area of over 97,000 square meters. The transactions include:
• M1 Business Park with an area of 69,105 square meters (five buildings), which has been renamed Prologis Park Budapest M1, located 23 kilometers west of Budapest city center
• Westgate Park Rudna with an area of 28,000 square meters (one building) along with 14 hectares of land for development, which have been incorporated into the adjacent distribution park Prologis Park Prague-Rudna, located 20 kilometers from the Czech capital.
New investments
Prologis CEE has commenced construction of four speculative buildings and one BTS facility with a total area of 97,500 square meters.
• 29,000 square meters at Prologis Park Prague-Jirny for the company Globus
• 27,650 square meters at Prologis Park Szczecin
• 18,550 square meters at Prologis Park Wrocław V
• 16,430 square meters at Prologis Park Bratislava
• 5,885 square meters at Prologis Park Bratislava
Completed investments
In the Central and Eastern European region, Prologis has delivered five warehouse facilities with a total area of 130,000 square meters:
• 32,100 square meters at Prologis Park Prague-Airport for Červa, a wholesale supplier of personal protective equipment
• 31,730 square meters at Prologis Park Prague-Jirny for Mall.cz, an online store offering everyday goods and electronic equipment
• 30,000 square meters of speculative space at Prologis Park Prague-Airport
• 23,600 square meters of speculative space at Prologis Park Bratislava, which is already 100 percent leased
• 12,350 square meters for an automotive service provider at Prologis Park Prague-Jirny.
Lease agreements
From the beginning of January to the end of June 2015, Prologis leased over 905,000 square meters in Central and Eastern Europe, 10 percent more than in the same period last year. The company signed new lease agreements covering 324,000 square meters and renewed agreements totaling nearly 411,000 square meters. The remainder consists of short-term agreements. At the end of the first half of the year, the occupancy rate of the Prologis CEE portfolio was 93.1 percent, excluding facilities currently under construction.
New key lease agreements
• 48,800 square meters of new and additional space at Prologis Park Prague-Jirny with the company Globus
• 26,500 square meters at Prologis Park Poznań II with an e-commerce company
• 15,900 square meters at Prologis Park Budapest M1 with an electronic device manufacturer
• 12,550 square meters at Prologis Park Poznań II with Solid Logistics
• 12,000 square meters at Prologis Park Stenovice with the company Borgers
– The first half of the year was very fruitful for Prologis CEE. We focused on strengthening our portfolio based on strategic acquisition and development investments in markets where there is a shortage of modern warehouse space – said Ben Bannatyne, Regional Director of Prologis in Central and Eastern Europe. – The accuracy of our investment decisions is confirmed by the volume of space we have leased, amounting to nearly one million square meters, high portfolio occupancy rates of 93.1 percent, and a customer retention rate of 86.3 percent. We are pleased that our customers have confidence in both the quality of our services and the location and spatial development plan of our parks.
Operating actively in five countries in CEE with a portfolio of 4.3 million square meters, Prologis is the largest owner and manager of distribution facilities in Central and Eastern Europe (as of June 30, 2015).