Prologis Announces First Quarter Activity in Europe

19 April 2016

Occupancy Level Stable at 95 Percent 59,030 Square Metres of New Development Starts; 71 Percent Build-to-Suit

AMSTERDAM (19 April 2016) –Prologis, Inc., the global leader in logistics real estate, today announced first quarter activity in Europe. 

Operating Performance

Prologis Europe ended the first quarter with 95 percent occupancy. The company signed new leasing agreements totalling nearly 260,500 square metres in the first quarter. 

At quarter-end, the company’s operating portfolio was 15.4 million square metres. Adding developments and value-add acquisitions, the portfolio was 16.4 million square metres. 

“Customer sentiment is becoming more even across Europe,” said Ben Bannatyne, president, Prologis Europe. “It remains strong in the U.K. and Northern Europe, and is improving in Central, Eastern and Southern Europe.  Occupancy across our European portfolio remains the highest on record.” 

Markets with the strongest customer demand in the first quarter were:

Notable new leasing activity in the first quarter included:

 
Development Starts

Supply of Class-A distribution facilities remains low across all European markets. In the first quarter, Prologis Europe started four developments in the Netherlands, the U.K. and the Czech Republic. Totalling 59,030 square metres, 71 percent of the development space was build-to-suit and 29 percent was speculative. 

Development starts included:

“We continue to selectively develop in tighter markets with solid operating fundamentals, as a result of low vacancy levels, available equity and positive customer sentiment,” Bannatyne said. 

Acquisitions and Disposals

In the first quarter Prologis Europe acquired €30 million of buildings, totalling 52,600 square metres, and five land plots, totalling 414,390 square metres, across Europe. These acquisitions were in line with Prologis’ strategy of investing carefully in global markets. 

Acquisitions included:

During the quarter, Prologis Europe sold properties in Spain, the U.K. and the Netherlands for a total of €214 million. 

Disposals included:

“Logistics real estate continues to attract investors and capital for development continues to be strong,” Bannatyne concluded. “Cap rates remained stable over the first quarter, with the potential to compress further this year.”

See also

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