ProLogis Sets Sights on Europe

CZECH REPUBLIC-With another 10 countries, mostly in Eastern Europe, soon set to join the European Union, ProLogis is looking to expand its global distribution presence by capitalizing on increased and simplified trade between EU nations. The firm recently acquired its first distribution facility in the Czech Republic, consisting of five properties totaling more than 872,239 sf. It also acquired three new leases for 164,687 sf of distribution space in Poland last month.

According to Melissa Marsden, VP of investor relations for ProLogis, the Denver-based firm’s European strategy going forward will focus on developing new “mega-industrial facilities” for clients looking to replace their smaller, regional facilities scattered throughout Europe.

Marsden noted that prior to the formation of the EU, companies used to operate distribution spaces in nearly every county for which they did business. “Trade was so restrictive that they needed a facility in each country to avoid problems crossing borders,” she told GlobeSt.com during an event held here late last week.

ProLogis CEO Dane Brooksher added that the unification “creates a need for a single-source provider of pan-European distribution space.” Brooksher continued by noting the new additions to the union will translate to “another 100 million people that can be served without stopping at the border.”

With a portfolio consisting of 1,700 properties in 73 global markets totaling 200 million sf, ProLogis aids clients in “building facilities, locating facilities, and executing distribution strategies,” stated Brooksher. Worldwide clients include Unilever, Sketchers, and Ahold.