Prologis Adds 2.5 Million Square Feet in Eastern Europe; Joint Venture with Norges Bank Also Adds Assets
- Sep 11, 2014
Europe—Global industrial real estate company Prologis recently considerably expanded its portfolio with a number of acquisitions carried out through its Prologis European Properties Fund II, adding roughly 2.5 million square feet of space in the Czech Republic, Poland and Slovakia. Furthermore, the company has also announced that Prologis European Logistics Partners Sarl acquired another portfolio of approximately 1.6 million square feet and development land in Spain from SABA Parques Logisticos. PELP is a joint venture between Prologis and Norges Bank Investment Management.
The new portfolio added in Eastern Europe includes a total of 23 Class A industrial facilities divided between three different countries in the area: the Czech Republic, Poland and Slovakia. 17 of the properties totaling roughly 1.75 million square feet of space are located in Czech capital of Prague. Prologis Park Prague-Rudna is located on the D5 highway, offering easy road access into Germany and the Prague International Airport.
The portfolio also includes four properties in Warsaw totaling 596,000 square feet of space. The Prologis Park Warsaw-Zeran is located on regional transport route A2, with easy access to the Polish capital city’s core. The latest addition to the company’s Eastern European presence also consists of two industrial buildings in Bratislava. Totaling 124,900 square feet of space, the facilities are adjacent to Prologis Park Bratislava and also feature a land component of 19.3 acres. The full build-out potential for the parcel is estimated at around 413,000 square feet of logistics space.
According to Philip Dunne, president of Prologis Europe, the company has positive attitude in regards to the acquisition, mentioning that the acquisition of “well-located logistics facilities at a discount to replacement costs” will complement the company’s existing portfolio.
Prologis also expanded its European interests as PELP, a joint venture in which the company has a 50 percent stake acquired 1.6 million square feet of logistics facilities in Madrid and Barcelona. This acquisition has taken PELP’s European portfolio to a total of 230 logistics facilities totaling 56.5 million square feet.
The newly acquired portfolio includes 960,151 square feet in Barcelona, with assets here offering great access to Barcelona’s city center and the Port of Barcelona. Also part of the Spanish acquisition is an industrial complex totaling around 676,275 square feet of space just south of the Adolfo Suarez Madrid-Barajas Airport and 10 km away from Madrid’s core. The acquisition also included 36.4 acres of development land that, at full build-out, could end up adding around 849,509 square feet of industrial space in Prologis’ Madrid market.