ProLogis European Properties renews leases on over 250,000 square metres of distribution space in Southern Europe
07/10/2010
ProLogis European Properties (Euronext: PEPR), one of
Europe’s largest owners of modern warehouse distribution
facilities, today announces that it has completed lease renewals,
totalling 250,600 square metres of distribution space, in France
and Spain.
FagorBrandt, the leading supplier of domestic appliances in France
and one of the leading players in the European market, has signed
two lease renewals totalling 103,600 square metres. The first for
69,300 square metres in ProLogis Park Orléans and the second
for 34,300 square metres at Isle d’Abeau, both in France.
Both leases will expire in December 2021 and are subject to
standard lease indexation.
PEPR’s largest customer, CEVA Logistics, has renewed three
leases totalling 75,700 square metres. Two agreements are 12-year
lease renewals at ProLogis Park Vatry, near Paris in France. The
first, for 42,500 square metres, will expire in December 2021 and
the second, for 20,300 square metres, will run to December 2022.
Both leases include a cap and collar on future indexation. The
final lease renewal covers 12,900 square metres of distribution
space at ProLogis Park Alcala, near Madrid in Spain. This five-year
lease renewal will expire in March 2016 and is subject to standard
lease indexation.
A nine-year lease renewal was signed with Depolabo Pharma
Logistique, one of the largest providers of pharmaceutical
pre-wholesale and contract logistics services in France. The lease
covers 20,600 square metres at ProLogis Park Angers, France, where
the company has been leasing space from PEPR since September 2001.
The lease renewal runs to the end of September 2019 and future
indexation is subject to a cap and collar. In addition, Depolabo
will remain in 25,100 square metres of space in ProLogis Park
Arras, France until October 2013.
Schneider Electric, a global specialist in energy management, will
remain in 10,400 square metres of space at Isle d’Abeau,
France once its current lease for 20,900 square metres expires in
2011. The new lease will run from February 2011 to February 2017
and is subject to standard lease indexation.
Finally, European integrated equipment and service supplier, Daher
International, will remain in 15,200 square metres at Le Havre,
France until March 2014. Daher has been leasing space from PEPR in
Le Havre since March 2002 and the lease is subject to standard
lease indexation.
Simon Nelson, head of asset management of PEPR
said: “We are delighted to have renewed these leases with
some of our largest customers across Europe, demonstrating the
benefit of great customer service and the prime locations of our
distribution centres. These transactions have on average 3.4 years
to next lease break or 7.4 years to lease expiry, substantially
reducing our releasing risk in what remains a competitive market.
Overall, the market level rents achieved on these lettings,
although below previous passing rent, reinforce our view that
rental rates are stabilising across the Southern European
markets.”
The transactions were completed on behalf of PEPR by ProLogis
(NYSE: PLD), manager of the PEPR portfolio.
-Ends-
For further information, please contact:
Investor relations
Jennifer Crooke
+44 207 518 8708
jcrooke@prologis.com
Media
M:Communications
Ed Orlebar / Charlotte McMullen
+44 20 7920 2323 or 7920 2349
orlebar@mcomgroup.com /
mcmullen@mcomgroup.com
About ProLogis European Properties
(PEPR)
ProLogis European Properties, or PEPR, is one
of the largest pan-European owners of high quality distribution and
logistics facilities. PEPR was established in 1999 as a closed-end,
real estate investment fund, externally managed by a subsidiary of
ProLogis, a leading global provider of industrial distribution
facilities. In September 2006, PEPR was listed on Euronext
Amsterdam.
As at 30 June 2010, PEPR has a portfolio of 232 buildings, covering
4.9 million square metres in 11 European countries, with an
estimated market value of €2.8 billion. The portfolio has an
occupancy level of 93.7% and an average of 3.4 years to the next
lease break or 5.4 years to lease expiry.
2011 Annual Report
