Prologis Signs U.K. Lease Agreement - Analyst Blog
19 Ottobre 2012 - 6:10PM
Zacks
Prologis Inc.
(PLD), a leading industrial real estate investment trust (REIT),
has recently signed a new lease agreement spanning about one
million square feet in the U.K., for an undisclosed amount. The
deal was penned with Sainsbury's Supermarkets Ltd, a premier
retailer and the third largest supermarket chain in the
country.
Prologis would construct a build-to-suit facility for Sainsbury's
at the Daventry International Rail Freight Terminal (DIRFT), a
rail-road intermodal freight terminal with an associated
warehousing estate. The proposed construction is slated to come up
within the Prologis DIRFT II development site in Daventry and
scheduled to commence in early 2013.
The fully built DIRFT II project is expected to encompass 2.2
million square feet. The facility is strategically located
alongside the M1 motorway and the West Coast Mainline railway,
offering both road and rail connectivity. In addition, a new
intermodal terminal connecting the existing DIRFT railway sidings
is due to be installed next to the building. Consequently, the
distribution center is expected to provide unmatched communication
facilities to the lessee.
Besides its locational advantage, the facility is designed to
achieve a “Very Good” accreditation from Building Research
Establishment Environmental Assessment Method (BREEAM). BREEAM sets
the standard for the best practice in sustainable building design,
construction and operations. Furthermore, the project is expected
to receive the best possible Energy Performance Certificate (EPC)
ranking based on its energy efficiency
rating.
The agreement showcases the inherent high quality of the properties
of Prologis and signifies a growing demand for Class A logistics
space in the U.K. Earlier in the month, Prologis had signed a new
build-to-suit agreement in the U.K. to construct a turnkey
distribution center spanning about 300,000 square feet for Network
Rail. Additionally, in May and September 2012, Prologis had signed
two build-to-suit agreements to construct a new e-commerce
distribution hub spanning 473,000 square feet and 810,000 square
feet of distribution space respectively, in Osaka, Japan.
With improving property values and growing institutional demand for
quality properties, Prologis has witnessed a growing customer
interest in new build-to-suit development projects across the
globe. Additionally, leasing decisions that were earlier postponed
due to volatility in the markets are gradually coming off the
shelf.
Prologis acquires, develops, operates and manages industrial real
estate space in North America, Asia and Europe. As of June 30,
2012, Prologis had approximately 18 million square feet of
logistics and distribution space in the U.K.
We currently have a Neutral recommendation and a Zacks #2 Rank for
Prologis, which translates into a short-term Buy rating. We also
have a Neutral recommendation and a Zacks #3 Rank (short-term Hold
rating) for Winthrop Realty Trust (FUR), one of
the peers of Prologis.
WINTHROP REALTY (FUR): Free Stock Analysis Report
PROLOGIS INC (PLD): Free Stock Analysis Report
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