Prologis Inks Build-to-Suit Deal in Poland
San Francisco-based industrial real estate investment trust (:REIT) Prologis Inc. (PLD) has inked a deal with a retailer for a build-to-suit facility in Poland. Spanning 376,000 square feet, this distribution center represents the fourth build-to-suit project in less than two years at Prologis Park Wroclaw V.
With a larger customer base and supply chain consolidation, the demand for logistics infrastructure have risen substantially in Central Europe and Prologis is set to capitalize on it.
Built on 173 acres of land, Prologis Park enjoys easy accessibility for being adjacent to Wroclaw's ring road and close to major transportation routes through the Wroclaw Bielany junction. Upon completion, the park will have over 3.1 million square feet of Class-A logistics space and serve as a key logistic hub.
As a matter of fact, Prologis is endeavoring to capitalize on its global prospects. With growth in e-Commerce, there is a rising demand for Class-A facilities and the company stands to benefit as it has the capacity to offer modern distribution facilities in strategic infill locations. Moreover, leasing decisions that were earlier postponed due to volatility in the markets are gradually coming off the shelf.
Its build-to-suit deal in the first quarter with end-to-end e-Commerce service provider - SpeedFC, a subsidiary of Navarre Corp. (NAVR) and the transaction with Chinese logistics provider, Deppon are expected to contribute meaningfully to the company’s top line.
Prologis currently holds a Zacks Rank #3 (Hold). Two other REIT stocks that are performing well and deserve a look are DCT Industrial Trust Inc. (DCT) and Extra Space Storage Inc. (EXR), both of which carry a Zacks Rank #2.
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