PROLOGIS IN EUROPEBUILDING

BUILDING
SUCCESS
PROLOGIS IN EUROPE
RECORD-BREAKING YEAR
ACCELERATING INTO THE FUTURE
PROLOGIS TO THE RESCUE
prologis.com
04
RECORD-BREAKING YEAR for
CENTRAL AND EASTERN EUROPE
06 ACCELERATING INTO THE FUTURE
08 PROLOGIS TO THE RESCUE
10 sustainable high
14
HIGH QUALITY BUILDINGS IN
STRATEGIC LOCATIONS
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Despite the economic problems besetting the
eurozone, Prologis continues to attract and
retain customers; our vacancy rates are going
down and the number of new developments
is going up. Along with many other real
estate developers, owners and managers, we
were affected by the global financial crisis,
but the situation has given us the opportunity
to reassess and realign our business. In a
changing market, it is more important than
ever for us to adapt so that we can meet the
evolving needs of our customers.
Since 2008 one of our priorities has been to reduce risk
and following the merger between Prologis and AMB
Property Corporation in June last year, we have been
working to build one of the top three balance sheets in
the industry. Our growing financial strength means that
we can invest for the future; we can develop strategies,
such as rail freight and sustainable buildings that we
know will meet our customers’ requirements.
Along with innovative facilities, Prologis can also offer
the most modern and geographically diverse portfolio of
logistics space in the world. Furthermore, anticipating our
customers’ needs, we are taking an increasingly focused
approach to investment and asset management,
re-shaping our property portfolio and land bank so that
we can deliver facilities in the most important distribution
locations across Europe.
At Prologis, we see our customers as strategic partners.
We work with them at every stage of the development
process to make sure that new distribution centres
are tailored precisely to suit their operations. However,
once we have handed over the building, our relationship
often continues. Not only do we work with many multinational customers to meet their distribution property
needs around the world, we also maintain a long-term
interest in many of our developments. Our in-house
property management team is always available to advise
customers and to help out in an emergency.
A successful business is built on sound customer
relationships and we believe that we can offer our
customers benefits that cannot be matched in today’s
industrial and distribution real estate market.
Philip Dunne
President Europe
Prologis
2011 results
•
increased occupancy to 91.8% by the
end of 2011
•
disposed of 31, 600 square metres
(340,000 square feet) of industrial space
•
leased more than 3.4 million square metres
(36.5 million square feet)
•
•
acquired 150,600 square metres
(1.6 million square feet) of industrial
space across Europe
Started 16 developments, comprising nearly
290,000 square metres (3 million square feet),
across Europe
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RECORD-BREAKING YEAR for
central And eastern europe
By the end of 2011, Prologis had leased
more than 1.7 million square metres
(18.3 million square feet) of industrial
space in Central and Eastern Europe
(CEE), breaking its 2010 record by more
than 400,000 square metres (4.3 million
square feet). Within the region, Poland
proved to be the most active market
accounting for nearly 58 percent of all
Prologis’ CEE deals and beating its own
leasing record for 2010.
“Our leasing results in CEE were very strong,” said Ben
Bannatyne, Prologis’ regional director for Central &
Eastern Europe. “As well as leasing available space within
our portfolio, we have delivered build-to-suit facilities
in Poland, the Czech Republic and Slovakia and in the
process we have further developed our relationships with
key customers.”
proctEr & gamble: Prologis park sochaczew
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Poland Goes From Strength to Strength
CEE Plans for 2012
Poland is Prologis’ largest CEE market, offering 2.1
million square metres of space in 108 buildings across
26 distribution parks. During 2011, the company signed
lease agreements for more than 992,000 square metres
(10.7 million square feet) – a 13 percent increase on 2010
– giving Prologis a 48 percent share of Poland’s industrial
property market.
Building on this strong performance, Prologis has made a
good start to 2012 with significant new leasing activity.
“We will continue to focus on letting available warehouse
space and renewing contracts with existing customers,”
said Ben Bannatyne. “However, we are also looking for
pre-let agreements and we have a number of sites across
the region that have been prepared and are now ready
for development.”
“The stock of distribution facilities has gradually
decreased in recent years and at the same time, demand
has risen” said Bartosz Mierzwiak, market officer for
Poland, “As a result, rents have stabilised and in some
markets we have seen rental growth.”
Globus: Prologis park Prague-Jirny
unilever: Prologis park Piotrków
“
Our leasing results in
CEE were very strong...
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ACCELERATING
INTO THE FUTURE
As the logistics industry continues to grow, automotive
companies across Europe are upgrading their distribution
facilities. In Germany, truck and bus company MAN has taken
41,500 square metres (446,900 square feet) at Prologis Park
Munich-Neufahrn. Meanwhile in the UK, BMW Group (UK) Ltd
is moving into a new 42,500 square metres (457,500 square feet)
pre-let warehouse at Prologis Park Pineham.
“
...Prologis understood our
requirements and the new facility
is designed specifically to meet the
needs of the automotive industry.
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Industry-Leading Operation
The Pineham facility will be a new regional distribution centre,
from which the BMW Group will deliver parts to BMW,
MINI, Rolls-Royce Motor Cars and BMW motorcycle dealers
throughout the UK and Ireland. The new energy-efficient
building, which has achieved BREEAM 2008 ‘Excellent’ and
an EPC ‘A’ rating, marks a significant milestone for the
BMW Group.
As Managing Director, Tim Abbott said: “This facility, which
represents a multi-million pound investment, has been
designed to further develop our industry-leading parts
logistics operations.”
BMW: Prologis park pineham
MAN Expansion
At Prologis Park Munich-Neufahrn, the 41,500 square
metre (446,900 square feet) transaction includes a new
12,700 square metre (136,200 square feet) sustainable
logistics facility that is now on site and is scheduled
for completion in summer 2012 when it will become
a European parts distribution centre. The remaining
space will, in addition to the 10,200 square metres
(109,300 square feet) that MAN already occupies on
the park, strengthen the company’s regional depot
network in southern Germany.
“The new distribution centre will help us to meet
increased market demand,” said Sebastian Gruber,
MAN site manager at Dachau. “Prologis understood our
requirements and the new facility is designed specifically
to meet the needs of the automotive industry.”
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prologis
to the rescue
In 2011, over 90 percent of customers across Europe who had
the opportunity to end their contracts with Prologis, chose to
stay and one of the reasons many decided to remain is due to
the relationship that they had formed with the in-house property
management team. With a 50-strong team in every market across
Europe, the Prologis team are experts in helping customers
achieve the highest standards of building maintenance and the
lowest operating costs.
The team is always on call and if
a potential emergency strikes,
they are ready to take action.
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Heavy Snow Falls in Neustadt
One Monday morning in December after a weekend of heavy
snow, Prologis property manager Thomas Schellhorn received
a call from the FM Company worried that the weight of snow
could collapse the roof of its building in Neustadt, Germany. It
was estimated that 125kg/m2 had accumulated on the 18,000
square metres (194,000 square feet) roof – nearly double the
accepted critical load of 75kg/m2. FM had vacated the building
but needed to restart operations as quickly as possible since
it only had five days warehouse capacity at other distribution
centres around Europe.
Thomas immediately met Marcus Flatau, the FM Company
centre manager on site and on the advice of a structural
engineer they brought in disaster recovery specialists THW
and seven cranes so that the roof could be cleared without
delay. At the same time, Thomas arranged for additional
heaters to be brought into the building to help melt the snow
together with a flushing and suction vehicle to draw the
melted snow off the roof. He also arranged round-the-clock
catering for around 60 men.
Back on Track
3,500 manpower hours and 400 crane hours later the
roof had been cleared and by Wednesday morning, it was
sufficiently safe to allow FM Company to re-start operations.
The customer had only lost 52 hours and was able to catch
up with deliveries very quickly.
FM was particularly impressed because on Wednesday, the
roof of its French distribution centre - not a Prologis building failed, also due to heavy snowfall and the Neustadt facility
was able to take over the delivery of goods to France as well
as Germany.
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SUSTAINABLE HIGH
Prologis is gaining a strong reputation for delivering energy
efficient, low carbon buildings that have been designed and
constructed with minimal environmental impact. In Europe,
we have developed some pioneering facilities, particularly in
the UK where we have taken sustainable distribution centres
to a completely new level.
Setting the Standards
In every market across Europe, our project
management activities are comprehensively
monitored, audited in order maintain our ISO
14001:2004 certification. Applying the same rigorous
standards to our buildings we seek certification through
LEED (Leadership in Energy and Environmental
Design) or BREEAM (Building Research Establishment’s
Environmental Assessment Method). In the UK, we
also aim to achieve the best EPC (Energy Performance
Certificate) possible within the building’s size category.
huhtamaki: prologis park turin 2
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In Italy, we developed the country’s first LEED
‘Gold’ distribution building. Developed for the food
packaging company, Huhtamaki, the 13,000 square
metre (140,400 square foot) facility is at Prologis Park
Turin 2 in Settimo. At Dartford in the UK, we achieved
BREEAM 2008 ‘Outstanding’ for the SusCon building
with the highest score ever awarded. However, from
a logistics point of view, one of the most interesting
facilities that Prologis has developed is the new railconnected warehouse for Tesco at DIRFT II.
suscon: the bridge, dartford
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SUSTAINABLE HIGH
The Age of the Freight Train
As logistics operators seek to cut their carbon
emissions, rail is moving into the spotlight as the most
environmentally friendly way to transport freight.
Tesco, the UK’s largest retailer, is leading the way with
a new 75,900 square metres (817,000 square feet) railconnected distribution centre at Prologis’ DIRFT II site.
The new distribution centre, which has achieved
BREEAM ‘Excellent’ accreditation and an EPC
‘A’ rating, has separate road and rail operations.
With three rail reception lines and a slab that will
accommodate either reach stackers or rubber-tyred
gantry cranes, it can handle potentially up to eight
trains a day. Once the new facility
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is fully operational, Tesco estimates that it will take
almost 100,000 lorry journeys off the roads every year,
supporting the company’s commitment to becoming a
zero carbon business by 2050.
“Not only does the new facility provide the space
we need to support the future growth of our grocery
range,” said Tony Fletcher, Regional Corporate
Affairs Manager at Tesco. “It also delivers major
environmental benefits due to its location and on-site
rail infrastructure. The facility will significantly reduce
the number of lorries on the roads, saving around 14
million road miles and 19,600 tonnes of CO2 emissions
every year.”
“
...The facility will significantly
reduce the number of lorries on
the roads, saving around 14 million
road miles and 19,600 tonnes of CO2
emissions every year.
Prologis Park Hanover 2 is the first logistics building to be
awarded DGNB (German Sustainable Building Council)
certification. The new 15,200 square metre (164,000
square feet) facility, which was pre-let to an international
automotive supplier, has been awarded a ‘Silver’ certificate.
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“
This new building will allow us
to co-ordinate our purchasing
and logistics operations across
the Nordic region...
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HIGH QUALITY BUILDINGS IN
STRATEGIC LOCATIONS
Expert at Vaggeryd
Consumer Electronics company Expert has taken
60,000 square metres (646,000 square feet) from Prologis
at Bårano logistics park in Vaggeryd, south of Jönköping
for a new Nordic distribution centre that will eventually
serve over 800 stores in Sweden, Norway and Denmark.
Strategically located next to a multi-modal terminal, the
facility offers Expert the potential to transport goods by
both road and rail.
“This new building will allow us to co-ordinate our
purchasing and logistics operations across the Nordic
region,” said Magne Solberg, CEO of Expert Sweden.
“The distribution centre will handle deliveries to our
stores and direct deliveries to customers who buy our
products online.”
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HIGH QUALITY BUILDINGS IN STRATEGIC LOCATIONS
Syncreon at Prologis Park Tilburg
In the largest industrial deal signed in the Netherlands in
2011, Syncreon has taken 50,000 square metres
(540,000 square feet) at Prologis Park Tilburg. Syncreon,
a logistics provider, has taken the building to service
a European distribution contract with an international
computer manufacturer and the new facility is ideally
located near the Belgian border at a midpoint between
Rotterdam and the German industrial zone.
“This is a significant step for us,” said Brian Murphy,
managing director for Syncreon Benelux. “Prologis Park
Tilburg will become an important base for our client
services. When it’s time to grow, we have the opportunity
to expand.”
“
...When it’s time to grow, we have
the opportunity to expand.
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Expert Logistics at Crewe
Expert Logistics, a subsidiary of DRL Holdings Ltd, the
largest online kitchen appliance specialist in the UK has
taken Prologis Crewe 360, a 33,400 square metres
(360,000 square feet) distribution centre with BREEAM
‘Excellent’ accreditation and an EPC ‘A’ rating, close to
the M6 motorway.
“The company is currently operating from a number of
smaller buildings, so the move to Prologis Crewe 360
will allow us to consolidate our distribution operations
under one roof,” said Dave Ashwell, managing director
of Expert Logistics. “This building is ideally suited to
our business, since it gives us immediate access to the
motorway network, and its environmental credentials
mean that it will be cost-effective to operate.”
“
...its environmental credentials
mean that it will be cost-effective
to operate.
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HIGH QUALITY BUILDINGS IN STRATEGIC LOCATIONS
Galeries Lafayette at Prologis Bonneuil
Galeries Lafayette has taken a pre-let on 11,000 square
metres (118,400 square feet) of distribution space at
the Port of Bonneuil sur Marne to service its Galeries
Lafayette and BHV stores. Port of Bonneuil sur Marne,
which is part of the Port of Paris, is a multimodal freight
interchange offering road, rail and river transport. The
new facility has been designed and constructed to
achieve LEED certification and when completed, it will
be France’s first LEED certified distribution centre.
“The Port of Paris fits with Prologis’ focused port and
airport investment strategy,” said Francois Rispe, Prologis
General Manager, Southern Europe. “It is France’s biggest
river port and the second largest in Europe.”
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“
The Port of Paris fits with
Prologis’ focused port and
airport investment strategy
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Prologis Headquarters Europe
Schipholboulevard 115
1118 BG Schiphol
The Netherlands
+31 (0) 20 655 66 66
prologis.com
design: tasselldesign.co.uk
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