ProLogis has signed an agreement to acquire a 79-acre (32-hectare) property from Michelin in the French city of Poitiers. The parcel is the site of a recently closed Michelin manufacturing plant. ProLogis will build a 32,000-m² distribution center on the property, which Michelin will use to serve markets in France and other countries in Europe under a multi-year lease.
The site allows for the construction of three additional buildings, for a total of more than 136,000 m² of industrial space. Michelin currently leases more than 27,900 m² from ProLogis in multiple markets in the United States.
"We're extremely pleased to announce this transaction with Michelin, whose global reputation for quality has made them the leading provider of tires to consumers around the world," said Ranald Hahn, ProLogis managing director for southern Europe. "Through this new agreement, we are expanding our relationship with a great global brand, while significantly enhancing our industrial property portfolio in the region. We look forward to working with Michelin at the Poitiers site and serving them as their industrial facilities provider."
"Michelin is pleased to have successfully negotiated this agreement with ProLogis, which we believe will promote new economic activity in the area," Michelin said in a company statement. "ProLogis' extensive customer base will enhance its ability to attract jobs to Poitiers - a key factor in our decision to select them as developer for this important project."
The Michelin site is located near France's A10 motorway and N10 national road, enabling efficient distribution to markets throughout France and other parts of Europe. Completion of the first distribution center at the new park is expected in the second half of 2007.