"Since October of 2008, we've taken some major steps to reduce the overall level of risk in our business," says ProLogis CEO Walter Rakowich. "A part of this process has been to redefine how we approach new development - focusing more on development management opportunities and build-to-suit transactions utilizing our land bank, and when possible, investing our capital alongside that of our partners and customers."
In order to reduce risk, as Rakowich mentions, the facility will become part of the ProLogis European Property Fund II. Construction is slated to begin this month and will complete by the Spring of 2010. The site would also allow for the construction of another building totalling 431,000 square feet.
Hi-Logistics plans to use the building to distribute goods throughout Northern Europe. "Locating in Oosterhout will enable Hi-Logistics to take advantage of a popular logistics location in Northern Europe, with quick access to transportation via truck, train or barge terminal," says Jae Sun Lee, president of Hi-Logistics Europe.
The lease between ProLogis and Hi-Logistics is the first, although LG Electronics utilizes more than 2.6 million square feet of ProLogis space throughout the US and Europe.
"Hi-Logistics is a well-respected logistics company and has established a sound international presence," says Philip Dunne, president for ProLogis in Europe. "We are happy to support this customer's evolving distribution needs in The Netherlands and to continue our ongoing relationship with LG Electronics."
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