Prologis announced full-year 2016 activity for its business in Central and Eastern Europe. The company leased 1.8 million sqms in the region. New lease agreements accounted for 700,000 sqm and lease renewals for 900,000 sqm, with the balance short-term agreements. The CEE portfolio occupancy rate was a record 96.4 percent.
In 2016, Prologis invested in all four of the CEE countries in which it operates. The company began construction of 18 buildings totalling 331,000 sqm —70 percent of that construction was build-to-suits and 30 percent was speculative development. New development starts increased over 2015 by some 65 percent. The company continued to pursue its strategy of selective development in key markets characterized by low vacancies.
Development starts:
- 56,000 sqm build-to-suit for Tesco at Prologis Park Galanta-Gan, Slovakia
- 42,200 sqm build-to-suit for Agata at Prologis Park Piotrków II, Poland
- 30,300 sqm pre-let facility for a retailer at Prologis Park Prague-Jirny, Czech Republic
- 21,700 sqm speculative facility at Prologis Park Bratislava, Slovakia
- 21,000 sqm build-to-suit for Waberer’s at Prologis Park Budapest-Sziget, Hungary
Completed developments:
- 34,200 sqm build-to-suit for Sportisimo at Prologis Park Prague-Rudna, Czech Republic
- 22,300 sqm build-to-suit for Arvato Polska at Prologis Park Stryków, Poland
- 21,500 sqm fully let speculative facility at Prologis Park Budapest-Sziget, Hungary
- 20,500 sqm build-to-suit for Mall.cz at Prologis Park Prague-Jirny, Czech Republic
- 11,740 sqm build-to-suit for Geis at Prologis Park Stryków, Poland
In 2016, Prologis delivered 14 buildings totalling 251,000 sqm; among those, eight buildings were started and completed in the same year.
Prologis acquired M0 Central Business Park in Hungary, and two fully leased buildings totalling 31,400 sqm became a part of Prologis Park Budapest-Sziget. In addition, the company acquired three hectares of land in Prologis Park Prague D1 East, and 22.6 hectares in Prologis Park Bratislava.
