Ushering in good news for its European platform, industrial real estate investment trust (:REIT), Prologis Inc. (PLD) disclosed the penning of three new lease deals spanning 753,000 square feet in its development and acquisition portfolios in the UK, France and Slovakia. The deals reflect the rising demand for Prologis facilities in this part of the world.
In the UK, the deal is for a 258,000 square foot lease at Prologis Tamworth 594 in the West Midlands, England, penned with a distributor of automotive parts. With this deal, the facility that was purchased recently gets fully leased.
The second deal is in France for a 345,000 square foot build-to-suit facility for a retailer at the Meaux Business Park in the Paris market. Offering direct access to Roissy-Charles de Gaulle Airport, this facility has provision for expansion up to 538,200 square feet.
The third is also a build-to-suit deal for 150,000 square foot of space penned with a sensor-based technologies provider. Scheduled to be positioned at Prologis Park Bratislava, this facility would enjoy direct access to major motorways, Slovakia's capital and the international airport.
With around 145 million square feet of logistics and distribution space as of Sep 30, 2013, Prologis is the leading provider of industrial real estate in Europe. Moreover, the current deals reflect the solid demand for special logistics facilities offered by Prologis.
As a matter of fact, the demand for well-positioned, Class-A logistics facilities remains high amid a larger customer base and supply chain consolidation. However, the pace of new units’ construction is low. It is this demand-supply disequilibrium that is set to define the market dynamics in the near term in Europe. Alongside, with a capacity to offer modern distribution facilities in strategic infill locations, Prologis is set to gain from this.
Prologis currently carries a Zacks Rank #3 (Hold). However, other better performing REITs include Chatham Lodging Trust (CLDT), Cousins Properties Inc. (CUZ) and CubeSmart (CUBE). While Chatham Lodging carries a Zacks Rank #1 (Strong Buy), Cousins Properties and CubeSmart have a Zacks Rank #2 (Buy).