Prologis significantly expands its portfolio of urban warehouses in Europe
For its open-ended fund PELF, the company purchased from the last-mile operator - Crossbay 128 buildings and 6 developments under construction, in perfectly situated urban locations.
The transaction, carried out as part of the investment strategy of Prologis, addresses key customer needs related to high-quality infill properties in highly urbanized locations. This investment will help increase the scale of the company's operations and expand its offering for European customers.
Transaction details:
- over 1 million square meters added to the company's portfolio in Europe;
- transaction value of 1.585 billion Euro;
- 85% covers urban areas;
- consists of 128 facilities and 6 developments under construction, in seven European countries, with a total area of 1.14 million square meters;
This transaction shows that we are consistently able to offer our customers high-quality logistics locations in urban areas. Near densely populated areas, we create opportunities that go beyond just real estate and contribute to the growth of our customers - emphasizes Ben Bannatyne, President, Prologis Europe. - With the continuous growth of e-commerce, locations near high-population centers are becoming increasingly important for customers.
Key locations
All properties and developments are located within or near major metropolitan areas in European countries:
Italy (Rome and Milan);
Netherlands (Amsterdam and Rotterdam);
Spain (Madrid and Barcelona);
Germany (Nuremberg and Berlin);
France (Paris);
Belgium (Brussels);
Poland (Łódź).
Approximately 85% of the purchased facilities can serve an area inhabited by over a million people within 30 minutes. And thanks to 95% occupancy of the new investments, the Prologis customer base will certainly grow. We will soon begin cooperation with over 110 new customers. High-quality buildings will become even more attractive thanks to unique Prologis projects such as the Prologis Essentials platform or PARKlife™.
Customer-oriented and urban-focused strategy
As e-commerce continues to grow, urban populations increase, and consumer expectations change following the COVID-19 pandemic, urban logistics has an increasing impact on the choice of warehouse location. Urban facilities capable of serving dense population clusters are becoming increasingly important for our customers.
Consumer preferences and purchasing behaviors are changing. The development of logistics that occurred in connection with the pandemic has given us a unique insight into warehouse needs for the next 5-10 years said Joseph Ghazal, Chief Investment Officer at Prologis Europe.
The global scale of our operations and deep knowledge of local conditions allow us to carry out such large and significant transactions with confidence. Our teams across Europe work together to develop lasting relationships with all our partners and effectively anticipate our customers' needs. We focus on their satisfaction and take into account the challenges they face, as well as their problems. These issues are deeply embedded in our forward-looking investment strategy.
