ProLogis (NYSE: PLD) has announced that it has pre-leased 10,700 m² of industrial space in Bucharest, Romania, to Kuehne + Nagel, one of the world's leading providers of third-party logistics services.
Kuehne + Nagel will occupy space at ProLogis Park Bucharest A1, a new industrial park ProLogis is developing along Bucharest's A1 motorway, the country's primary transit corridor. Kuehne + Nagel will use the state-of-the-art facility to serve customers with local and regional distribution requirements. The facility is scheduled for completion in the first half of 2007.
"We're very pleased to announce this agreement, which marks the first lease transaction at our new industrial park in Bucharest," said Gary Anderson, president and chief operating officer for ProLogis in Europe. "Kuehne + Nagel is a recognized leader among third-party logistics providers and is currently one of ProLogis' largest global customers. We anticipate continued growth of this strategic relationship and to serving Kuehne + Nagel at their new location in Romania."
"We look forward to occupying our new facility at ProLogis Park Bucharest A1, which will enable Kuehne + Nagel to better meet the expanding distribution requirements of our European customer base," said Pierpaolo Sironi, national manager, Kuehne + Nagel Romania. "We are pleased to once again be working with ProLogis and look forward to solidifying our position as a leading provider of third-party-logistics services in the emerging Romanian market."
Muler Onofrei, market officer for ProLogis in Romania, noted that the supply of modern distribution space in Bucharest remains constrained. Demand, meanwhile, is expected to increase due to strong GDP growth, increased levels of domestic consumption and the country's recent entry into the European Union.
"ProLogis Park Bucharest A1 adds real value to the company's overall portfolio in Central Europe," Onofrei said. "It will provide our customers with more distribution options as they seek to augment their reach and presence in the region."
ProLogis Park Bucharest A1 is being developed less than 14 miles from downtown Bucharest, Romania's primary industrial center. Two distribution centers are currently under construction at the park totaling 53,700 m². The park can accommodate 12 facilities and more than 317,100 m² of distribution space at full build-out.