Prologis, Inc. today announced it will commence development on three buildings totaling more than 700,000 ft² (approx. 65,000 m²) in the United Kingdom. The company has signed a 165,000-square-foot build-to-suit agreement with Hi Logistics, a specialist logistics subsidiary of LG Electronics, and will also develop two speculative facilities totaling 535,000 ft² (approx. 49,700 m²).
The build-to-suit will be located at Prologis Park Ryton, a 64-acre logistics park in the West Midlands, the UK's primary distribution hub. The facility will serve as a regional distribution center for Hi Logistics' customers throughout the country. Hi Logistics also occupies Prologis facilities in The Netherlands and Poland. In addition to the build-to-suit, the company will develop a 225,000 ft² speculative facility at the park.
The third development, a 310,000 ft² development, will be located at Prologis Park Dunstable, less than two miles from the country's primary north-south transit corridor. The 32-acre park also offers direct access to London Luton Airport.
All three properties have been designed to achieve BREEAM 2011 'very good' accreditation and the best possible EPC rating for their size.
"With our UK portfolio over 97% leased, demand for well-situated, class-A logistics facilities remains strong," said Gary Anderson, CEO, Prologis Europe and Asia. "We are pleased to strengthen our established relationship with Hi Logistics and look forward to expanding our footprint and fulfilling space requirements at two of our key parks."
Prologis is the leading provider of industrial real estate in the United Kingdom, with approximately 17 million ft² of logistics and distribution space as of June 30, 2013.
Source: Prologis
