The global developer of industrial properties intends to build more huge logistics space in its Prologis Park Budapest-Sziget II complex. More than 114,000 sqm of new space is in the pipeline in the park that is near the M0 ring road.
Prologis continues to increase its development stock around the Hungarian capital. The company announced the development of another 114,000 sqm of space in its Sziget II centre, just outside Szigetszentmiklós.
One large building has been delivered recently and another one is to be completed shortly. Occupancy is almost total. Construction of the remaining 2 phases is subject to demand and feasibility but Prologis hopes to start the third phase in 2024. The total value of the multi-phase investment is about €130 million.
The developer assumes that the demand stays robust and special needs can be served in the coming years too with more BTS-type projects to come. The company wants all of its development to reach zero carbon emissions by 2025.
Prologis expects the industrial rents and yields will go up again in 2023. Rents are projected to grow from the present €5,1/sqm/month to €5,9-6,0/sqm/month while yields can be up to 6%/year, the company said in a press briefing in Budapest.
