The land is located along Romania's A1 motorway, which is the country's primary transit corridor. The initial development phase includes infrastructure improvements and two of the four distribution centers, which will total about 609,000 sf.
Completion of the first building is scheduled for December; the second building is scheduled for delivery in January 2007. A source at ProLogis tells GlobeSt.com there are no preleases in place for the park, "but we will be actively marketing the space over the coming months."
ProLogis COO Walt Rakovich says in a prepared statement that the central and eastern regions of Europe have emerged as strategically important areas for industrial distribution. The company has positions in Poland and Hungary and one of the largest industrial platforms in the Czech Republic.
In Romania, Rakovich says he sees robust demand for new facilities and a shortage of supply. Muler Onofrei, ProLogis' market officer for Romania, says the average vacancy rate for modern industrial buildings in Romania today is about 2%, and Romania's scheduled admission into the European Union in January 2007 should accelerate demand.
"Investing in Romania now will enable ProLogis to leverage its deep existing relationships with global customers and establish itself as a primary provider of industrial space to the Romanian market," Onofrei says.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.