Prologis, a global leader in logistics real estate, has announced full-year 2017 activity for its business in Central and Eastern Europe (CEE).
Operating Performance
The company leased 1.6 million sqm in CEE. New lease agreements accounted for just over 500,000 sqm and lease renewals for more than 1 million sqm, with the balance short-term agreements. The CEE portfolio occupancy rate was a record 97.4 percent.
At year-end, Prologis’ CEE operating portfolio was 4.4 million sqm.
Notable new leasing activity included:
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45,100 sqm with Empik Group in Sochaczew, Poland
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21,200 sqm with INTUON in Bratislava, Slovakia
- 19,600 sqm with a leading clothing and houseware retailer in Budapest-Gyal, Hungary
- 13,200 sqm with PST CLC in Prague-Uzice, Czech Republic
Notable lease renewals included:
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37,500 sqm with Auchan, in Budapest-Ullo, Hungary
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36,900 sqm with Moto-Profil in Chorzow, Poland
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27,600 sqm with NAY in Bratislava, Slovakia
- 13,700 sqm with L’Oreal in Prague East, Czech Republic
“It was fitting that Prologis should celebrate its 20th anniversary in Europe with another strong year for our business. Occupancy reached a record 97.4 percent as the volume of lease renewals surged by 11 percent above 1 million sqm – a distinct sign that our customers value our well-located, high-quality facilities and superior property management services,” said Martin Polak, senior vice president, regional head, Prologis.
Investment Activities
In 2017, Prologis began construction of nine buildings totalling 170,200 sqm — 32 percent of that construction was build-to-suit and 68 percent was speculative development. This activity is part of Prologis’ selective development strategy in key markets with strong demand amid low vacancy rates.
Development starts:
- 62,400 sqm speculative facilities (two) at Prologis Park Nitra, Slovakia
- 28,300 sqm speculative facility at Prologis Park Prague-Uzice, Czech Republic
- 23,700 sqm build-to-suit for VAFO PRAHA at Prologis Park Prague-Rudna, Czech Republic
- 16,200 sqm build-to-suit for Textile House at Prologis Park Bratislava, Slovakia
- 14,500 sqm speculative facility at Prologis Park Prague-Airport, Czech Republic
In 2017, Prologis delivered 15 buildings totalling 275,000 sqm; among those, three buildings were started and completed in the same year. All completed buildings were 95 percent leased.
Completed developments:
- 56,000 sqm build-to-suit for Tesco at Prologis Park Galanta-Gan, Czech Republic
- 42,300 sqm build-to-suit for Agata at Prologis Park Piotrków II, Poland
- 30,250 sqm build-to-suit for HP Tronic at Prologis Park Prague-Jirny, Czech Republic
- 21,200 sqm speculative facility at Prologis Park Bratislava, Slovakia
- 18,100 sqm build-to-suit for Arvato Polska at Prologis Park Stryków, Poland
Acquisitions & Disposals
Prologis acquired 81.59 hectares of land for Prologis Park Bratislava and a further 12.75 hectares for its new park, Prologis Park Nitra, in Slovakia. During 2017, Prologis sold 10 facilities totalling 365,440 sqm and 25.86 hectares of land located in Poland, Slovakia and the Czech Republic.
Sustainability
Building 18, constructed for the leading Czech sports retailer Sportisimo at Prologis Park Prague-Rudná, became the first logistics facility in the Czech Republic to receive BREEAM’s highest accreditation rating of Outstanding. This is only the second such building in Central and Eastern Europe to receive this rating.
Prologis in Poland
In 2017 the company leased a record 940,800 sqm and ended the year with occupancy of 96.2 percent. The company delivered five buildings totalling 93,000 sqm and began the development of a new build-to-suit project totalling 8,260 sqm.
“We are entering 2018 with strong momentum. Three new parks are set to be developed and we will finalise the implementation of Singu FM – an electronic system for real estate management and technical support of our facilities in all logistics parks across Poland. These projects will further strengthen our real estate portfolio and help us maintain our leadership position in the Polish market,” commented Paweł Sapek, senior vice president,country manager,
Prologis Poland.
