®

Prologis Europe Magazinespaces

WintEr 2012/2013

02

Published by Prologis Europe, February 2013 WTC Schiphol F-6, Schiphol Boulevard 115, 1118 BG Schiphol, The Netherlands

About Prologis. Prologis, Inc., is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of Dec. 31, 2012, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 554 million square feet in 21 countries. The company leases modern distribution facilities to more than 4,500 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.

contents

working in partnership 03

shaping industrial real estate in europe 04

from strength to strength: growth at le havre 06

global solutions for geodis 09

a bright future for moissy-cramayel 10

closer look at spain 12

new deal for uk logistics operators 14

prime location: barcelona 16

you can rely on Prologis 18

sustainable warehouses for BMW 20

european deal news – in brief 22

introd

uctio

nspaces

03

Since we first established our European business 15 years ago, Prologis has grown to become Europe’s leading industrial real estate developer, owner and manager.

As of December 31, 2012, our property portfolio in the region comprised 12.8 million square metres (138 million square feet), far larger than any other industrial real estate company in Europe. So to what do we owe our success?

When we arrived in 1998, we found that the supply of distribution buildings across Europe was out of date and ill-equipped to handle pan-European logistics operations. Inevitably, there was a high level of demand for the modern, efficient—and therefore more cost-effective— facilities that Prologis could supply, and despite the fluctuations of the eurozone economy, we have continued to attract and retain customers.

The logistics industry reflects the nature of consumer demand and because patterns of consumption change, the industry must constantly adapt. We understand these market dynamics better than anyone else, and we work closely with our customers to help them meet the challenges of the rapidly evolving market.

We regularly review and refine our building portfolio and land bank so that we can deliver facilities in the most important distribution locations across Europe. Then, when a customer has selected a site, we work with them at every stage of the development process to make sure that their new distribution centre is tailored precisely to suit their operations. Because of this close working relationship, we can anticipate our customers’ needs and our financial strength means that we can invest in innovative strategies. We can, for example, introduce a new approach to leasing or to sustainable buildings - measures that we know will meet our customers’ requirements.

Once we have handed over the building, our relationship often continues because, unlike many other developers, we retain a long term interest in our buildings and business parks. Our in-house Property Management experts are on hand to advise on building-related issues and should an emergency strike, they are always ready to help. Looking further afield, multi-national customers value the guidance that our Global Customer Solutions (GCS) team can offer in helping them to meet their international distribution property requirements. Prologis has the most modern and geographically diverse portfolio of logistics space in the world and in an unpredictable global economic climate, the GCS service is in growing demand.

Over the past 15 years, Prologis has built a successful business on the foundation of unparalleled customer relationships. Looking ahead, we will continue to offer our customers benefits that cannot be matched in today’s industrial and distribution real estate market. ¶

Philip Dunne President Europe, Prologis

working in partnership

04

Since Prologis first moved into Europe in 1998, GDP across the region has remained at around 1% per annum. Nevertheless, the company has established a business that is now valued at $11.7 bn with a portfolio of 12.8 million square metres (138 million square feet) and around 1,410 hectares of land. How can it be possible that Prologis has built a business on this scale in a region where there has been very little growth? The answer, as Walt Rakowich, the co-chief executive officer of Prologis recently pointed out, is that “...there is a tremendous need for what we do.”

This need is driven by the rapidly changing dynamics of the logistics market. As Walt Rakowich said, “Europe is the largest block of people in the Western world. There are a lot of people to be served.” However, the nature of consumer demand – and the ways in which this can be fulfilled – is constantly evolving, driving change along the supply chain.

breaking boundariesTwo factors that have revolutionised the logistics market in Europe have been the removal of national trade barriers and the growth of e-commerce. When Prologis first arrived in Europe, the system of warehousing was country specific. However, the advent of the European Union, allowed companies to re-configure their distribution operations on a pan-European model, which meant that they could move to new, efficient warehouses serving several markets. As this trend continues to gather momentum, Prologis has provided customers with large, strategically located distribution centres both in Europe and in the wider Nordic region. In the Netherlands, for example, Syncreon has taken 47,000 square metres (505,920 square feet) at Prologis Tilburg DC3 to service a European distribution contract with an international computer manufacturer.

While the removal of trade barriers and the rationalisation of the logistics supply chain have helped manufacturers and retailers to keep consumer prices under control, the accession of 12 new member states to the EU in May 2004 provided new opportunities for giving the consumer value for money. The new Central and Eastern Europe (CEE) markets offered dual benefits; low cost production and a rapidly expanding economy. It is therefore not surprising that the CEE has been an important growth market for Prologis. By the end of 2012 for example, the company had leased more than 1.16 million square metres (12.4 million square feet) of industrial real estate in the region and reduced its vacancy rate to 8% from 10% in 2011.

industrial real estate in europe

fea

turespaces

clicking with customersAlong with the removal of national boundaries, another trend that is driving change in the logistics industry is the growth of e-commerce. Retail is currently one of the most active sectors in the more mature European markets and the rapid development of online shopping is proving to be a strong influence on space requirements.

While grocery retailers need warehouses close to urban centres and the populations they serve, consumer goods operators have more flexibility. Pure e-tailers are generally seeking distribution buildings of over 46,500 square metres (500,000 square feet) and their main considerations are cost and labour availability. To achieve these objectives, e-tailers will consider non-traditional distribution locations. ASOS.com for example, has taken a 49,238 square metre (530,002 square feet) cross-docked warehouse at Barnsley in the UK.

The main reason that e-commerce retailers need such large buildings is that they have no other stock holding capacity and they need their facilities to run as efficiently as possible. However, to meet the needs of an increasingly demanding consumer, some operators are also starting to investigate the possibility of delivering goods directly to the customer and they are seeking parcel hubs that are located close to urban centres. Typically in the 4,645 square metre (50,000 square feet) to 9,290 square metre (100,000 square feet) size range, these buildings are usually highly bespoke with doors on all four sides.

The nature of the European logistics market is changing rapidly, but as Philip Dunne, president of Prologis Europe said, “At Prologis we strive to put in place the most compelling offer on the market. We have modern buildings and strategically located sites that, together with our financial strength and technical expertise, allow us to keep pace with our customers’ evolving needs.” ¶

06

from strength to strength:

growth at le havre

On 21 January 2013, MSC (Mediterranean Shipping Company), one of the world’s largest container shipping operators, launched the first of three new weekly feeder services at Le Havre. Providing links with England, Scotland, Ireland and French ports along the Atlantic coast, these new services highlight Le Havre’s growing importance as a multi-modal logistics hub. With a 9% increase in container traffic between 2011 and 2012, this positive trend has been reflected in demand for distribution property. As a result, Prologis’ occupancy rate in the Le Havre market jumped from 76% at the end of 2011 to 90% at the end of 2012.

According to Manel Vericat, head of operations Southern Europe at Prologis, Le Havre was a promising growth market until 2008. Under the shadow of the global economic crisis exports declined and, as a result, there was a lower demand for distribution space. However, in 2012 activity in the market returned to pre-2008 levels and Prologis signed leases on 130,000 square metres at Prologis Park Le Havre (Hode Park) and Prologis Park Etainhus.

While transactions on 96,000 square metres have been lease renewals, those on the remaining 34,000 square metres have been for new space. Dachser, for example, has taken a 6,285 square metre unit at Etainhus to support is ocean freight business. Similarly, XP Log has taken a new 6,000 square metre unit at Prologis Park Le Havre – where it now occupies 56,000 square metres - to manage the export of car parts to Africa.

As Manel Vericat pointed out, both parks are ideally located, close to both the port and the motorway network and in line with growing demand, Prologis could potentially develop an additional 70,000 square metres; up to 60,000 square metres at Prologis Park Le Havre and up to 10,000 square metres at Prologis Park Etainhus.

“We are delighted to see the upturn in the Le Havre market,” said Francois Rispe, regional head Southern Europe at Prologis. “This is an important strategic location for Prologis at both a European and international level and we are in an excellent position to deliver high quality facilities to meet our customers’ requirements.”

The strength of the Le Havre market was recently underlined by the recent Prologis portfolio sale to Blackstone. This included two facilities totalling 15,000 square metres at Port-Autonome du Havre, demonstrating that Le Havre is as

attractive to investors as it is to a wide range of occupiers. ¶

on lo

ca

tion

spaces

07

We are delighted to see the upturn in the Le Havre market

““

Prologis Park Le Havre

06

global solutions for

geodis

custo

me

r spo

tlight

spaces

09

With continuing volatility in the global business environment, third party logistics providers (3PLs) are under increasing pressure to deliver greater value to shippers. The 3PLs, many of which work across several continents, are important customers for Prologis and in order to help them – and other multi-national companies – to meet their extensive and often complex property requirements, Prologis has strengthened its Global Customer Solutions (GCS) team.

Based across four continents, members of the GCS team work closely with senior decision-makers in each customer company. They can offer a comprehensive service as property portfolio advisers, providers and managers, helping customers to expand, consolidate and manage their facilities wherever in the world these buildings happen to be.

“Our aim is to work seamlessly with our customers,” said Henk Folmer. “We can use our property expertise and local knowledge as part of a customer’s business development team and this is proving to be a valuable service.”

emerging marketsAs an example, Henk Folmer points to Geodis, a leading global logistics provider. When Geodis was pursuing a logistics outsourcing contract in China, Francois Rispe and his team – who work closely with Geodis at its headquarters in France – liaised with Max Wang, Ben Cornish and their colleagues at Prologis in China to provide Geodis with a 27,870 square metre (300,000 square foot) distribution facility in Chengdu. Equipped with this new distribution centre, which met the company’s immediate needs and offered capacity for growth, Geodis won the business.

Emerging markets such as China, as Capgemini’s 2012 Third Party Logistics Study shows, are a priority for many of the 3PLs’ customers. For a shipper, the ideal solution in these new markets is to find a global 3PL with strong local knowledge; and this is where the GCS team can help. With operations on four continents, the Prologis team can work with local market officers to help the customer get the best solution for its business. Again, Geodis provides a good example in that the GCS team has helped the company not only to secure facilities in China, but also in Mexico and Brazil.

flexibilityAltogether, Geodis occupies 504,198 square metres (5,129,841 square feet) of Prologis property across Europe, the Americas and Asia; however as well as seeking the best value for Geodis in the emerging markets, Prologis is prepared to be flexible in its dealings with the company closer to home. Earlier this year, Geodis renewed leases on 92,903 square metres (1 million square feet) in France, which included a small 930 square metre (10,000 square foot) facility in Orleans. Geodis wanted the unit as part of its negotiations with a major retailer; to help Geodis secure a long term contract with its customer, Prologis agreed to a six month lease on the unit that could then be renewed monthly. ¶

“If companies like Geodis are successful, then so are we,” says Henk Folmer, senior vice president at Prologis. “We will do everything in our power to help our customers to meet their business objectives. The unpredictable nature of the global economy means that our customers are forced to deal with some challenging situations and we are finding that our expertise is in growing demand.”

If companies like Geodis are

successful, then so are we.

““

10

Despite a gloomy economic climate, the French logistics industry is thriving and France has become the second most developed market for outsourcing logistics after the UK. While servicing and supporting growth across many different sectors, logistics is also proving to be a catalyst for regeneration; creating new jobs and opportunities.

Demonstrating this trend, redundant sites in strategic distribution locations, such as Greater Paris are being transformed into modern logistics parks. In 2012, PSA Peugeot Citroen relocated its parts distribution operations from its 110,000 square metre facility at Sénart, Moissy-Cramayel to a new building at Vesoul (Haute-Saône). By the beginning of 2013, Prologis had begun to transform the 60 hectare site into Prologis Park Moissy II Les Chevrons.

Over the past 30 years, Moissy-Cramayel had been the main distribution hub for the PSA group. Close to the Francilienne (104) as well as the A5a and A5b, the site also has easy access to the A4 (Paris/Metz) and the A6 (Paris/Lyon) motorway. Offering the dual advantage of prime location and proximity to the highly successful Prologis Park Moissy I Chanteloup, the site offered an ideal opportunity for Prologis to develop within this strategically important area and the company acquired the site in July 2012.

With all the necessary authorisations in place, Prologis is going to start demolition work to make way for a new 230,000 square metre development that has been designed to meet High Quality Environmental (HQE) standards. Prologis anticipates that the site will be cleared in time for the first buildings to be delivered in 2014.

on lo

ca

tion

spaces

11

moissy-cramayel

a bright future for

“The acquisition and redevelopment of the site gives Prologis the opportunity to provide industry-leading real estate solutions while preserving the existing logistics benefits in a strategic location,” said Jean-Louis Lazuech, market director France at Prologis.

For local people the regeneration of the former PSA site is also very good news. As Jean-Jacques Fournier, mayor of Moissy-Cramayel pointed out, only 600 people were employed at the PSA facility while Prologis will be creating 1,000 new jobs. The new Prologis Park Moissy II Les Chevrons will therefore not only benefit logistics occupiers who are seeking to new, energy efficient buildings, it will also bring a wide range of opportunities for people living in the local area. ¶

At Prologis we strive to put in place the most compelling offer on the market...

““Prologis Park Chanteloup

12

closer look at

With an increasing focus on improving efficiencies, many logistics occupiers are reconfiguring their supply chains. This trend is driving demand for high quality distribution facilities and Prologis has seen an increased level of activity across Europe. In Spain, where Prologis has parks at prime distribution locations in Madrid, Barcelona, Tarragona, Valencia, Zaragoza there has been a steady flow of new customers.

At Prologis Park Massalavés in Valencia, a logistics operator in the recycled packaging sector has taken a 16,300 square metre unit to consolidate its three existing facilities in the region under one roof. The move will both streamline the company’s systems and reduce costs in a location that has easy access to the AP7 motorway. Prologis Park La Granada

13

on lo

ca

tion

spaces

In a similar move to drive supply chain efficiency, Kuehne+Nagel has taken 2,535 square metres of distribution space at Prologis Park Barajas in Madrid. Close to Madrid airport and to both the A2 and M11 motorways, the new facility is in an ideal location for the company’s operations.

“We needed new facilities that would enable us to expand and strengthen our activities in Spain,” said Miguel Ambielle, managing director of Kuehne+Nagel Spain. “From this new centre, we will be able to optimise the costs and processes of our customers’ supply chains by consolidating the operations of various businesses in one space. The quality and location of the Prologis Park Barajas facilities suit our needs perfectly.”

The quality of Prologis’ developments was also a deciding factor for Yokohama Rubber Company, a leading tyre producer and distributor that has taken 4,500 square metres at Prologis Park Alcala, which is located close to Madrid with direct access to the A2 motorway. Considered one of the most modern and innovative logistics parks in Spain, Prologis Park Alcala includes occupiers such as CAT, Goodyear-Dunlop and Abbott Laboratories.

“We saw an encouraging level of activity during 2012 and we are delighted to be working with new international customers,” said Gustavo Cardozo, senior vice president Spain at Prologis. “Since Spain is the gateway to Europe for both Africa and Latin America and has ports strategically located for trade with Asia, it is in an ideal position to

become a distribution hub for Southern Europe.” ¶

We needed new facilities that would enable us to expand and strengthen our activities in Spain says Nick Kittredge, Prologis’ said Miguel Ambielle, managing director of Kuehne+Nagel Spain. “From this new centre, we will be able to optimise the costs and processes of our customers’ supply chains by consolidating the operations of various businesses in one space. The quality and location of the Prologis Park Barajas facilities suit our needs perfectly.”

““

In the UK, Prologis has announced the launch of a new build-to-suit five year lease initiative to meet the needs of customers seeking modern distribution space to meet short-term contracts. This is the first time that high quality distribution centres have been available on this basis and the initial reaction from the market has been overwhelmingly positive. What has driven this

initiative and what does it mean for logistics

operators?

lack of space to meet growthAs the Government pointed out in The Logistics Growth Review – Connecting People with Goods (November 2011), logistics is ‘a hugely important part of the UK economy’. The sector directly employs over two million people and supports many other businesses from corner shops to supermarkets; from specialist manufacturers to e-commerce entrepreneurs. However, this thriving sector is facing a shortage of modern warehouse space.

In the boom years leading up to 2008, industrial property developers could hardly build speculative warehouses fast enough to meet demand. Wincanton, for example, snapped up a 65,032 square metre (700,000 square foot) speculative facility at Prologis Park Kettering as a direct import centre for Argos early in the build programme. Also in the East Midlands, at Prologis Park Wellingborough, Kuehne & Nagel took a 50,167 square metre (540,000 square foot) speculative building as a national distribution centre for the Whitbread supplying Costa Coffee, Brewer’s Fayre and Premier Inn Hotels.

The events of October 2008, however, brought speculative development to an abrupt halt; but because developers had an overhang of supply they were able to meet market demand for the next three years. Most of this new stock has now been let and the last two speculative facilities in Prologis’ portfolio built speculatively – 11,427 square metres (123,000 square feet) at Kettering and 12,913 square metres (139,000 square feet) at Pineham – have recently been taken by Great Bear and Dalepak respectively. However, although demand is increasing, market conditions are not yet right for the return of speculative development.

14

new dealfor uk logistics operators

overwhelmingly positive. What has driven this initiative and what does

it mean for logistics operators?

Prologis Park PinehamPrologis Park Kettering

an innovative approachPrologis has therefore developed a new strategy, as Andrew Griffiths, managing director of Prologis UK explained. “We realise that since nearly all the stock that was built speculatively in 2007 and 2008 has been let, logistics operators now have fewer options when they are looking for new space,” he said.

“We have been thinking for some time about how we can find an offer that meets our customers’ operational needs and we believe that we have found a competitive solution with the build-to-suit five year lease initiative.”

In exchange for a five year lease commitment, Prologis will develop a high quality, sustainable distribution centre. The offer includes fit-out and because it is available on prime Prologis sites that already have detailed planning consent, new facilities can be fully operational within 10 months.

sustainable buildings on

‘golden triangle’ sitesThis new initiative is available on two strategic distribution sites; at Prologis Park Ryton in Coventry, where Prologis can offer a 27,962 square metre (300,985 square foot) facility and at Prologis Park Kettering, where the company has consent to build a 30,772 square metre (331,235 square feet) facility.

As well as having a prime location, occupiers can be confident that these facilities will be cost-effective to run. In common with all Prologis’ new buildings, both distribution centres have been designed to be highly energy efficient; they will both be constructed to achieve a minimum BREEAM 2011 ‘Very Good’ accreditation and the best EPC rating possible for the building size. Prologis will also address the carbon embodied in the structure and fabric of the buildings. Embodied carbon will be measured, and all unavoidable emissions will be mitigated. ¶

fea

turespaces

15

a ‘game changer’Since the launch of this new initiative, Prologis has held meetings with a number of logistics operators, all of whom been very positive – some have even called it a ‘game changer’. Reassured by Prologis’ expertise and financial strength, potential occupiers are impressed that Prologis will be able to deliver the fully fitted out buildings so quickly. Depending on demand, it is possible that the company will extend the five year build-to-suit lease offer to other sites in their portfolio that have detailed planning consent.

We are very pleased with the response to this new offer. There has been a shortage of modern warehouse facilities in prime locations, but we hope that this new initiative will meet occupiers’ needs and help to take the industry forwards.

“ “

investing in the future

Marking the intersection of three continents, the Mediterranean has become a dynamic economic area within which the transport and logistics sector plays a vital role. Along the Mediterranean’s western coastline, Barcelona is one of its largest ports. Strategically located close to the border between Spain and France and served by an efficient motorway infrastructure, Barcelona is set to become one of the most important distribution locations in Southern Europe.

With work underway to double the size of the Port of Barcelona and increasing levels of demand for distribution space within the wider Barcelona Metropolitan Area, Prologis has been seeking to expand its portfolio within the city to meet the future needs of its customers. However, development land is constrained and many distribution facilities are standalone buildings that are owned by local developers or the occupiers. Therefore, Prologis could not make any progress with its plans until the real estate fund Morgan Stanley P2 Value decided to sell three fully leased distribution facilities at Granada del Penedes Village. As soon as the buildings came onto the market, Prologis moved quickly to buy them for PEPF II (Prologis European Properties Fund II).

16

Part of the Penedes Corridor, Granada del Penedes Village is in one of the best strategic locations in the Barcelona Metropolitan Area. Close to the AP7 and the Eix Diagonal motorways, the new facilities are not only within easy reach of Barcelona, but they also offer easy transport connections to Madrid, Valencia and over the border to France. The three buildings, which were built between 2002 and 2004, provide a total of 60,000 square metres (645,834 square feet). ¶

These are Grade A buildings that have been designed and constructed to the same high standards that we set at Prologis. The three facilities are a very good investment and – longer term – they will provide excellent opportunities for our customers.

prime locations

port of Barcelona

““

• Container traffic through the port in 2011 exceeded 2 million TEU (intermodal shipping containers), a 4% increase on the previous year

• Total traffic through the port including all modes of goods transportation was 44.2 million tonnes, a 0.4% increase on the weight transported in 2010

• In 2011, exports through the port increased by 14% compared with 2010. The main export markets were China, the United Arab Emirates and Turkey

• 630,102 new vehicles were transported through the port in 2011, a 14% increase on the previous year. This growth has been driven by exports and 350,000 vehicles were exported to markets in Europe, the eastern Mediterranean, Africa and America

17

on lo

ca

tion

spaces

Whether a heavy fall of snow threatens the roof of your distribution centre or you simply need guidance on building insurance, the in-house Property Management team at Prologis is available 24 hours a day to advise customers about the best way to run their buildings and – when necessary – they are ready to leap into action, explains Andres van de Reit, head of property management, Europe.

YOUCAN

RELYONPrologis

18

At Prologis, we take a long-term view of our properties, so we are delighted to work in partnership with our customers across many different areas to help them get the best possible value from their facilities.“ “

Fortunately, not many of the issues that the Property Management team deals with fall into the emergency category; however, their day-to-day assistance on a wide range of property-related matters is one of the main reasons that customers stay with Prologis.

“Prologis is the only leading developer to manage its own properties and this in-house service allows us to offer significant added value to our customers,” said Andres van de Riet, head of property management, Europe. “Every customer has a dedicated Prologis property management contact and this partnership approach is very effective.”

Property managers can, for example, help a customer move into a vacant facility within 24 hours after a deal is signed and if the building needs to be modified, they can work with the customer to ensure that the alterations are made quickly and efficiently with minimum disruption.

close collaborationAt the end of 2011, international logistics provider Syncreon took 47,000 square metres (505,920 square feet) at Prologis Tilburg DC3 in the Netherlands to service a European distribution contract with an international computer manufacturer. The location of the building – close to the Belgian border at a midpoint between Rotterdam and the German industrial zone – was ideal, but the facility itself needed some modification. Because Syncreon had to be operational immediately, Jessica Pilkes, property manager for Prologis Benelux, agreed a phased schedule of works with the customer. Carefully managed, the alterations were completed on time, marking the start of an excellent working relationship between Prologis and Syncreon.

saving costs – and cutting carbonBecause Prologis procures buildings services – such as insurances, security and energy – in volume and because its contracts are re-tendered on a regular basis, the company can offer its customers cost savings of around 15% across a number of areas. In addition to cutting operational costs, Prologis can also help customers save energy, working with the customer company to track energy consumption across their European facilities or to address specific issues such as lighting. Artificial lights are the main source of energy use in distribution warehouses and Prologis is working with a number of customers across Europe to identify the best solutions. In Poland, for example, the company is working on a pilot project with Unilever to install lighting technology that will reduce costs and energy consumption by up to 20% a year.

Thinking beyond the buildings themselves, Prologis can also help customers reduce their operational CO2 emissions and help their employees to save up to transport costs by setting up Green Travel Plans. This initiative is proving to be very popular in the UK, where the Green Travel Plans are run through dedicated websites at major development parks across the country. ¶

19

Prop

erty M

ana

ge

me

ntspaces

20

Publishing a global sustainability report every year in line with the Global Reporting Initiative framework, Prologis is widely recognised as a pioneer in corporate responsibility within the industrial property sector. Among the company’s most recent accolades is its inclusion in the Dow Jones Sustainability North America Index for the fifth consecutive year. But what in real terms does sustainability mean and how – when construction consumes more energy, and produces more CO2, than any other sector – can Prologis build sustainable warehouses?

The best way to answer this question is to take a close look at a recently completed Prologis facility; a good example is the 42,735 square metre (460,000 square foot) distribution centre that the company built for the BMW Group near Northampton, England.

In the UK, Prologis has developed a standardised approach to sustainable design and construction, but as Simon Cox, first vice president project management and UK sustainability officer pointed out, the methodology evolves with each facility. “The development programme is a continuous, iterative process,” he said. “Our aim is to optimise the efficient operation of the buildings and we take the lessons learned on each project to refine our practice.”

sustainable benefitsFor distribution centres, operational energy efficiency is an important aspect of sustainability and the BMW building – which gained BREEAM ‘Excellent ‘accreditation and an EPC ‘A’ rating – will save 10,000 tCO2e over a 30 year period according to monitoring agency Planet Positive. These savings have been achieved through a common sense approach to reducing the need for lighting and heating. The use of roof lights which make up 15% of the roofing together with intelligent lighting systems minimise the need for artificial lighting, while high levels of air-tightness – that in the BMW building exceed the Building Regulations standard by 86% – mean that heating is unnecessary. The benefits of this approach are not only environmental. For BMW, which can monitor energy usage remotely in Munich, these measures will mean savings of 50p per square foot – or £230,000 – a year.

Furthermore, there is no rental premium in being sustainable. But as Simon Cox said, there are real benefits for investors – not least because energy efficiency is often a deciding factor when occupiers decide whether to renew their leases. BMW has a ten year lease but Prologis will hold a much longer term interest in the building. “Making sure our buildings are sustainable is a very good strategy for us. If they weren’t their value would erode over time,” he said.

Sustainable

fea

turespaces

21

cutting embodied carbonOne of the unusual aspects of Prologis’ approach to sustainable warehouses is that it addresses the carbon embodied in the structure and fabric of the building. The company puts measures in place to reduce embodied carbon and then mitigates all unavoidable emissions. As Simon Cox pointed out, embodied carbon makes up 60% of the overall impact of a distribution building over its lifetime – a fact that is often overlooked by developers.

The impact of the materials used in constructing the BMW building was reduced partly by using carbon neutral products and also by cutting waste. As a result, Planet Positive found that the embodied carbon was 12.7% less than might be expected in a building of this type and that the impact of the supply chain was 8% lower than normal. Despite these measures, the unavoidable embodied carbon emissions were 14,649 tCO2e, Prologis was able to mitigate these by protecting 318 acres of Amazon rainforest through the environmental charity Cool Earth. ¶

for BMW

Warehouses

lasting valueAs the BMW building shows, Prologis makes a strong case for sustainable warehouses. With benefits not only to the environment, but also customers and investors, these buildings – and the methodology behind their design and construction – offer a practical way forward.

Making sure our buildings are sustainable is a very good strategy for us. If they weren’t their value would erode over time.

““

22

United Kingdom92,000 sqm lease agreement signed with a leading retailer at Daventry International Rail Freight Terminal (DIRFT), allowing the customer to develop its national distribution operations at an energy-efficient rail-connected facility.

15,500 sqm leased to an automotive company at The Fort in the West Midlands. The company is using the building to manufacture and store vehicle components.

14,200 sqm leased to a 3PL at Prologis Park Kettering. The facility includes an existing 11,400 sqm building, which has an EPC A (CO2 Index 24) rating.

Italy10,000 sqm leased to a 3PL at Prologis Park Bologna Interporto.

France26,600 sqm leased to a 3PL at Prologis Park Isle d’Abeau. The customer already occupied 13,000 sqm of distribution space at the site. 20,300 sqm leased to another 3PL at the same site.

A 3PL expanded its lease by 24,700 sqm at Prologis Park Evry in Paris, to a new total of 94,200 sqm.

19,000 sqm leased to a 3PL at Prologis Vémars as part of the customer’s plan to unify three of its platforms at one Prologis Park.

10,000 sqm leased to a 3PL at Prologis Park Orleans. An additional 10,000 sqm leased to the same customer soon after.

13,000 sqm leased to the world’s third largest container shipping group at Prologis Park Le Havre.

10,000 sqm signed with a 3PL at Prologis Park Senart in the southern Paris market.

Netherlands14,000 sqm at Prologis Park Eemhaven was leased to a 3PL.

A 3PL expanded its existing 50,000 sqm lease at Tilburg by 16,000 sqm.

Germany 29,800 sqm leased to an entertainment company, allowing it to provide Europe-wide distribution services for one of its customers in the toy industry.

A 3PL expanded its lease by 20,000 sqm to a new total of 65,000 sqm.

16,500 sqm was leased to a 3PL at Prologis Park Meerane.

A 3PL expanded its 20,400 sqm Build-to-Suit facility at Prologis Park Augsburg by 10,000 sqm.

10,000 sqm leased to a Cologne-based 3PL at Prologis Park Cologne.

Poland37,400 sqm leased to a 3PL at Prologis Park Dabrowa.

27,000 sqm leased to a retailer in Teresin, Poland.

33,800 sqm and 10,800 sqm leased to a 3PL at Prologis Park Dabrowa.

13,800 sqm leased to a 3PL at Prologis Park Szczecin.

Sweden22,000 sqm leased to a 3PL at Jönköping. The customer is Prologis’ third largest in Sweden

SpainPrologis acquired 60,000 sqm at Granada del Penedes Village, a prime market close to Barcelona. The modern facilities, built between 2002 and 2004, are fully occupied by six tenants from various sectors.

20,500 sqm leased to a supermarket wholesaler at Prologis Park Sant Boi near Barcelona.

16,300 sqm leased to a 3PL at Prologis Park Massalavesin near Valencia.

11,600 sqm leased to a 3PL at Coslada near Madrid.

Hungary19,600 sqm leased to a global leader in integrated self-service security systems and services at Prologis Park Budapest-Gyál. The company has been located at the Park since 2006.

Prologis lease activity totaled more than 3.5 million square metres in 2012; two percent higher than in 2011. Selected transactions include:

EUROPEAN DEAL NEWS – IN BRIEF

Prologis Park Kettering

Prologis Park Eemhaven

Prologis Park Arlanda

Prologis Park Szczecin

Prologis Park Budapest-Gyal

prologis.com

Your local partner to global trade ®

Prologis is the leading provider of distribution buildingswith over 51 million square metres owned andunder management in 21 countries on four continents.

In Prologis you will find a

partner with the expertise,

flexibility and resources to meet

your distribution property needs

both now and in the future.

With strategic logistics sites

worldwide, you can rely on

us to provide the facility you

need in the place you want to be.

TALKING TALKING TALKING TALKING TALKING YouRYouRYouRLANGLANGLANGLANGLANGuuuuuAGEAGEAGEAGEAGE