ProLogis Signs Build-to-Suit Deals – Analyst Blog

ProLogis (PLD), a leading global provider of distribution facilities, has recently signed two new build-to-suit agreements spanning about 522,000 square feet of space across the globe, representing approximately $60 million of total investment.

 

The build-to-suit agreements would be included in the development starts for fiscal 2010 second quarter. Year to date, global development starts total approximately $437 million. Combined with third-party sales of approximately $47 million, ProLogis has currently monetized about $180 million worth of land resources. For full year 2010, the company has targeted $700 million to $800 million of global development starts and intends to monetize about $350 million to $400 million worth of land resources.

 

The build-to-suit agreements include a 342,000 square feet distribution facility for a major third-party logistics company at ProLogis Park Chanteloup near Paris, and an 180,000 square feet distribution facility for a leading retailer in northern Japan. With improving property values and growing institutional demand for quality properties, ProLogis has witnessed a growing customer interest in new build-to-suit development projects across the globe.

 

ProLogis owns and manages interests in over 2,500 distribution facilities, service offices and properties spanning 475 million square feet of space (including properties under development). The company leases its industrial facilities to over 4,400 customers, which mostly include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs.