Prologis scoops 122,000 m2 Italian logistics package

Prologis' European Properties Fund II (PEPF II) has announced the acquisition of a portfolio of logistics facilities totalling 122,000 m2 in Italy.

The portfolio, believed to be valued at over €100 mln, comprises 11 logistics facilities at Interporto Bologna, a major intermodal logistics hub.

Financial details were not disclosed. However, Prologis noted that the assets were acquired at a 'significant discount'.

'This acquisition enables PEPF II to deploy capital in a market with strong demand and where the fund seeks to increase its presence,' said Simon Nelson, senior vice president of Prologis Fund Management. 'This was an opportunity to purchase, at a significant discount, high-quality assets that complement PEPF II's existing portfolio.'

The acquisition makes Prologis the largest single owner and manager of property within Interporto, with 40% of the total floor space.

Sandro Innocenti, country manager at Prologis Italy, added: 'The assets will benefit from the management and expertise of Prologis’ experienced local team, helping to unlock value in the future.'

Prologis was advised by DLA Piper.

The US logistics specialist owns and manages 820,000 m2 of distribution space in Italy, located in the Milan area, Pavia, Turin, Bologna, Padua and Rome.

Prologis told PropertyEU last month that it was switching its focus to acquisitions in Southern Europe. Speaking to PropertyEU in an interview, the company’s president Philip Dunne said: ‘The UK and northern Europe have become somewhat pricey. That is not to say that we won’t buy in those markets but we see more opportunities elsewhere. We hope southern Europe opens up and that we will become more active there in the next couple of years.’

Central Europe is also on the agenda, Dunne said, but added that opportunities there were not as plentiful as in other parts of the continent. ‘Central Europe is still a relatively immature market with more development than existing product.’

Prologis Europe boosted its assets under management by 13% to €10.9 bn in 2014.