Prologis, Inc. (PLD) recently announced that it has leased approximately 382,000 square feet of its Chengdu Airport Logistics Center to a global third-party logistics provider.
The leased property is located close to the Chengdu International Airport and the city center, thus enabling access to major transportation networks.
Chengdu is the capital of Sichuan Province and a major transportation hub for Western China. The lease covers phase two of the under-construction project, comprising two buildings expected to be completed by December 2011 and April 2012, respectively.
The leasing out of phase one in April 2011 and now of phase two brings stability to the construction of the center, which is still eight months away from completion. This also reflects the growing demand for Class A logistics facilities in western China. The excellent location of the Chengdu Airport Logistics Center along with the expanding manufacturing and retail market strengthens Prologis’ position in one of the key growth areas of China.
The company’s properties are typically located in large, supply-constrained infill markets at close proximity to airports, seaports, and ground transportation facilities, which enable rapid distribution of customers’ products.
Prologis (the erstwhile AMB Property Corp.) is a leading industrial real estate investment trust (REIT) that acquires, develops, operates and manages industrial real estate space in North America, Asia and Europe. The majority of the company’s portfolio comprises high throughput distribution (HTD), which provides multiple options for quick movement and the distribution of goods to the customer and serves as a critical element in creating efficiencies in the global supply chain.
Prologis currently retains a Zacks #1 Rank, which translates into a short-term Strong Buy rating. We are also maintaining our long-term Underperform recommendation on the stock. One of its competitors PS Business Parks Inc (PSB) currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
