Ushering in good news for its European platform, industrial
real estate investment trust (REIT)
) penned two build-to-suit deals in the continent for a total
space of 244,000 square feet. The deals mark the increasing
demand for Prologis facilities in this part of the world.
The first deal is for a 123,000 square feet facility at The
Bridge in Dartford, UK, penned with a high-tech manufacturing
group SEM. Notably, The Bridge is a joint venture development
between Prologis and the Dartford Borough Council and comprises
264-acre of land.
The second deal is for a 121,000 square foot logistics facility
at Prologis Park Szczecin in northwest Poland. It is signed with
a Danish third-party logistics company - Prime Cargo. Positioned
at the heart of the motorway network, this facility would operate
as a distribution center for the Scandinavian customers of Prime
As a matter of fact, the demand-supply disequilibrium is defining
the market dynamics in the near term in Europe. On one hand,
there is a solid demand for well-positioned, Class-A logistics
facilities and expansion of the current ones remain high amid a
larger customer base and supply chain consolidation. But on the
other hand, with the low pace of new units' construction, there
is a dearth of supply of high-quality logistics facilities in the
Hence, with a well-positioned land bank and a solid expertise in
development activities, Prologis is set to capitalize on this and
expand in major European markets. In fact, with around 149
million square feet of logistics and distribution space as of Dec
31, 2013, Prologis is the leading provider of industrial real
estate in Europe.
Going forward, we believe that efficiencies from enhanced scale,
development initiatives and recovering rents set the ground for
growth for this REIT. The company came up with
better-than-expected results in fourth-quarter 2013. In February,
the company also announced an 18% increase in its quarterly
Prologis currently carries a Zacks Rank #3 (Hold). Investors
interested in the REIT industry may also consider stocks like
Cousins Properties Inc.
Health Care REIT, Inc.
). All these stocks currently have a Zacks Rank #2 (Buy).
COUSIN PROP INC (CUZ): Free Stock Analysis
HEALTH CR REIT (HCN): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
PUBLIC STORAGE (PSA): Free Stock Analysis
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