Germany and Poland Hotspots in Q3 for Prologis
15th October 2019
![Logistics BusinessGermany and Poland Hotspots in Q3 for Prologis](https://www.logisticsbusiness.com/wp-content/uploads/2018/10/Prologis-Park-Piotrkow-II_BTS-Agata-1024x683.jpg)
Logistics real estate giant Prologis has released its third quarter financial numbers. European highlights picked out by the company are listed below.
• Demand remains healthy and customer sentiment holds. Supply chain reconfiguration remains a top priority.
o Demand hot spots were Germany and Poland
• Supply is driving divergence of markets, as land constraints drive capital to the markets with ample land, causing a surge in (spec) supply there.
o Rent growth strong in land-constrained markets
o Spec is slightly up, more than 50 per cent of volume.
o Supply hot spots were in order; Poland, the United Kingdom and the Netherlands
• Capital interest rises further, while cap rates continue to compress (-4bps q/q, -19bps y/y)
o Values (PLD) grew 2.1% q/q
Operating Performance as of September 30, 2019:
– Total portfolio: 17,5 million square metres*
– Period-end occupancy: 96.7%
– Total leasing activity: 671,715 square metres:
o 264,333 square metres of new leases
o 407,382 square metres of lease renewals
*includes: operating, development, held for sale, other and VAA/VAC
Capital Deployment – third quarter activities
Development
– Total development activity in the third quarter ran at 219,703 square metres:
o Eight build-to-suit starts with a combined total of 142,695 square metres in Germany, Italy, the Netherlands, Poland, Slovakia and the United Kingdom
o Three speculative starts at a combined total of 77,008 square metres in France, Italy and the Netherlands
Acquisitions & Dispositions
– 15 buildings were acquired with a total net rentable area of 370,642 square metres in Hungary, Spain and the United Kingdom
– 4 land parcels were acquired with a total land area of 111,787 square metres in France, Germany and the Netherlands
– Two building dispositions took place, totalling 27,225 square metres in Italy and one land parcel of 41,966 square metres was sold in the United Kingdom
Highlights:
– Carbon-neutral facility at Muggensturm, Germany, wins LogixAward at Muggensturm
– Colonial acquisition: largest European logistics portfolio transaction to date of 2019
– European Prologis colleague raise funds for vital cancer research through Stelvio for Life