Industrial real estate investment trust (REIT) – Prologis, Inc. (PLD) – inked two build-to-suit deals in Europe for a total space of 594,000 square feet. The move comes with the company focusing on sustainable building practices so as to meet the growing demand for high-quality logistics facilities amid a limited supply in Europe.
Specifically, one of the two deals is for a 335,700 square-feet facility at Prologis Park Prague-Airport in Czech Republic that has been pre-leased to a wholesale personal protection equipment supplier, CERVA.
The other deal, inked with Meyer & Meyer – the international fashion logistics provider, involves a 258,300 square-feet facility at Peine near Hannover, Germany. Marking the second Prologis-built facility in Peine for Meyer & Meyer, the deal signifies strong demand for Prologis’ superior facilities in this region.
As a matter of fact, the rising demand is the result of an increase in e-Commerce application and supply-chain consolidation. Prologis, with its well positioned land bank and capacity to offer high quality logistic facilities, is effectively capitalizing on this favorable trend.
In sync with this strategy, Prologis, apart from the above-mentioned build-to-suit deals in the Czech Republic and Germany, recently acquired a portfolio of 23 Class-A distribution centers across 3 European nations, namely the Czech Republic, Poland and Slovakia (Read more: Prologis Buys 23 Class-A Logistics Facilities in Europe).
The company, through its joint venture, Prologis European Logistics Partners Sarl (PELP), also bought a portfolio of logistics facilities and development land spanning over 1.6 million square feet in Spain (Read more: Prologis' PELP Buys Spanish Assets to Expand in Europe).
In fact, as of Jun 30, 2014, the company enjoyed ownership and management of around 154 million square feet of logistics and distribution space in Europe, denoting a strong foothold in the continent.
Prologis currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider better-ranked stocks like DCT Industrial Trust Inc. (DCT), Extra Space Storage Inc. (EXR) and Gladstone Commercial Corp. (GOOD). All these stocks hold a Zacks Rank #2 (Buy).
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