ProLogis European Properties (Euronext: PEPR) announced that it has renewed a 19,435-m² lease agreement at Schiphol, Amsterdam, with DHL Global Forwarding and completed four lease agreements in the Rotterdam area covering almost 42,000 m². As a result of these transactions, occupancy of the PEPR portfolio in the Netherlands has increased to approximately 95.7% from 90.4% at the end of December 2008.
ProLogis Park Eemhaven is now fully leased.
The Schiphol lease with DHL Global Forwarding is a new five-year agreement and is in line with current market levels, covering 19,435 m² of space to the south-east of the airport, with no lease break.
Two of the lease agreements in Rotterdam, totaling 11,200 m², are with C. Steinweg Handelsveem, a Dutch storage and logistics services provider and a new customer for PEPR. Both leases are at current market rents and for 3.5 years. ProLogis Park Eemhaven is now fully leased.
The third lease agreement in the Rotterdam area has been signed at Maasvlakte with a leading logistics provider specializing in the storage and shipping of exchange-traded metals and soft commodities. The two-year lease, for 19,121 m², is in line with current market rents. ProLogis Park Maasvlakte, encompassing 66,963 m² in total, is now 83.5% occupied.
A fourth agreement, also in Maasvlakte, is a two-year lease renewal signed with a subsidiary of one of the largest international third party logistics providers, for 11,437 m². The lease is at current market rental levels and the distribution space will be used to store consumer goods.
Simon Nelson, head of asset management of PEPR, said: "We are pleased to have increased the occupancy of our Dutch portfolio. The Eemhaven and Maasvlakte transactions demonstrate the appeal of the Rotterdam area, which is likely to continue to grow particularly with the upcoming port/industrial zone extension. With approximately 95.7% occupancy, the Netherlands is a very important market for us.
"Through this challenging economic climate, PEPR continues to demonstrate strong operating performance, benefiting from invaluable customer relationships, and delivering industry-leading occupancy levels."
At end December 2008, Deutsche Post DHL, the global market leader of the international express and logistics industry, is PEPR's second largest customer, with 23 leases covering 256,300 m² across the Czech Republic, France, the Netherlands and Poland. These leases account for 5.6% of PEPR's annualized rental income.
The transactions were completed on behalf of PEPR by ProLogis (NYSE: PLD), manager of the PEPR portfolio.