ProLogis European Properties leases 22,800 square metres to Keystone Distribution in the United Kingdom
21/03/2007
LUXEMBOURG – 21 March 2007 – ProLogis European Properties (Euronext: PEPR), a leading pan-European owner of modern warehouse distribution facilities, announced today that it has leased a 22,800 square metre distribution centre currently under construction to Keystone Distribution UK, manufacturers of a range of food products for global retailers.
The development site is at Maylands Industrial Estate, a large industrial park in Hemel Hempstead that sustained extensive damage during the Buncefield Oil Depot fire in December 2005. The new facility will replace an older industrial warehouse destroyed by the fire. Keystone Distribution, who is a subsidiary of Keystone Foods, will use the facility as a distribution centre under a 20-year lease.
“We’re very pleased to announce this long-term agreement with Keystone, which represents the first new lease at Maylands since 2005,” said Ralf Wessel, senior vice president and head of asset management for ProLogis European Properties. “The transaction establishes a new relationship with a high-quality customer at this location, and the building will enhance our total portfolio through improved marketability and rental value.”
Prior to the fire, Keystone owned and occupied a smaller distribution centre at Maylands.
“Returning to Hemel Hempstead proved to be the best solution for our company,” said Paul Pegg, managing director of Keystone Distribution. “Our new facility will enable us to efficiently service our client base and provide us with a vastly improved premises compared with our previous facility.”
The new distribution centre is scheduled for completion in the second half of 2007. The transaction was completed on behalf of ProLogis European Properties by ProLogis (NYSE: PLD), manager of the ProLogis European Properties portfolio.
A second ProLogis European Properties warehouse is also undergoing redevelopment at the park as a result of damage sustained in the fire. When completed, it will be re-leased by its former occupier, Gillette UK Ltd. Total investment in the reconstruction of the two facilities will be approximately £14 million, the majority of which is covered by insurance proceeds, and is expected to provide an initial yield in line with the market.
PEPR also owns a third facility at Maylands that was undamaged in the fire totalling 15,900 square metres and is currently occupied by Next Plc.
Located at the intersection of the M25, M1 and A1(M) motorways, Maylands Industrial Estate is a strategic location for logistics. The 200-acre park is near both Heathrow and Luton international airports, and is less than 30 minutes to central London. The park is also in close proximity to a highly skilled workforce, with more than one million people living within 12 miles of Hemel Hempstead. Other customers at Maylands include Kodak, DSG, HSBC, Toshiba, Epson and 3Com.
For further information, please contact:
Investor Relations
ProLogis European Properties
VP Investor Relations: Jennifer van der Eem
Tel + 44 207 518 8708/
jvandereem@prologis.com
Media
M:Communications +44 20 7153 1523 or 7153 1538
Ed Orlebar / Sarah Hamilton
orlebar@mcomgroup.com /
hamilton@mcomgroup.com
About Keystone Foods
Established in 1977, Keystone Foods produces a range of food products for retailers on a global basis. The company in the UK employs over 800 people at its three distribution centres in Hemel Hempstead, Heywood and Basingstoke and services over 1,000 restaurants throughout the UK.
About ProLogis European Properties (PEPR)
ProLogis European Properties, or PEPR, which listed on Euronext Amsterdam on 22 September 2006, is a leading pan-European owner of high quality distribution and logistics facilities. PEPR's portfolio of real estate is located in 25 submarkets within 11 European countries. Established in 1999, PEPR is a real estate investment fund (organised as a Luxembourg closed-ended fonds commun de placement) externally managed by a subsidiary of ProLogis, a leading U.S. based real estate investment trust that operates a global network of industrial distribution properties.
As at the end of December 2006, PEPR owned 277 distribution facilities covering approximately 5.4 million square metres of leasable space. PEPR’s customers are large third party logistic service providers as well as a broad range of companies in the retail and manufacturing sectors.
PEPR results for the quarter and year ended 31 December 2011
PEPR results for the quarter and year ended 31 December 2011 (81KB)
08 February 2012
