), an industrial real estate investment trust (REIT), has recently
penned two new agreements to lease an aggregate of approximately
1.1 million square feet, in Sao Paulo, Brazil. The deals were
sealed with AGV Logistica, a premier third-party logistics
provider, and Dafiti, one of the largest online fashion retailers
in the region, for an undisclosed amount.
In concurrence with the transaction, AGV Logistica would occupy
654,710 square feet in Prologis CCP Cajamar II Park, located in the
Cajamar submarket of Sao Paulo. Prologis is likely to start
construction of this distribution center in November 2012 and
expects to wrap it up by August next year.
On the other hand, Dafiti would occupy 412,729 square feet in
Prologis CCP Jundiai Industrial Park, located in the Jundiai
submarket of Sao Paulo. The facility has easy access to Avenida
Hermengildo Tonolli and is located in between the municipalities of
Campinas and Sao Paulo. When fully built out, the distribution
center is expected to total approximately 1.6 million square feet
of industrial space.
With the twin deal, both the facilities have been fully pre-leased
prior to construction. The projects are joint ventures of Prologis
with Cyrela Commercial Properties (CCP) - one of the leading
commercial real estate companies in Brazil.
Both development properties are expected to meet the highest
functionality, flexibility, and accessibility standards by
incorporating the technical know-how of CCP and expertise of
Prologis, the world leader in the acquisition and development of
Class A industrial projects.
With continued improvement in property values and growing
institutional demands for quality properties, Prologis has taken up
efficient leasing decisions that were earlier postponed due to
market volatility. The industrial property market in Brazil, mainly
in Sao Paulo, is also growing on the back of increasing demand.
According to a report by Cushman & Wakefield, the demand for
industrial space in Sao Paulo continued to grow in 2011, with
overall vacancy rate (stand-alone and industrial parks) falling
from 8.7% to 5.8%.
WINTHROP REALTY (FUR): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Prologis acquires, develops, operates and manages industrial real
estate space in North America, Asia and Europe. As of June 30,
2012, the company owned properties and development projects
spanning approximately 569 million square feet across 21 countries.
We currently have a Neutral recommendation and a Zacks #2 Rank for
Prologis, which translates into a short-term Buy rating. However,
we have an Underperform recommendation and a Zacks #5 Rank
(short-term Strong Sell rating) for
Winthrop Realty Trust
), one of the peers of Prologis.