Prologis to develop new facility in the Netherlands

Prologis has announced that it will develop a new 51,500 m² distribution facility in the Netherlands for Hi-Logistics, a wholly owned logistics subsidiary of LG Electronics.

'Since October of 2008, we've taken some major steps to reduce the overall level of risk in our business,' said Prologis CEO Walter Rakowich. 'A part of this process has been to redefine how we approach new development - focusing more on development management opportunities and build-to-suit transactions utilising our land bank, and when possible, investing our capital alongside that of our partners and customers.'

Prologis will build the facility on an eight-hectare parcel of land it currently owns in the city of Oosterhout, one of the main logistics hubs in the Netherlands. Upon completion of the facility, the project will be contributed to Prologis European Property Fund II, thereby generating proceeds and reducing risk to the company.

Hi-Logistics will use the space to distribute LG products regionally throughout Northern Europe. While this is Hi-Logistics' first lease agreement with Prologis, LG Electronics is one of ProLogis' largest customers and currently occupies a total of approximately 243,300 m² of distribution space with the company across the US and Europe.

Construction on the facility will commence in July 2009, and is expected to be completed in the spring of 2010. Prologis has additional land at the site with the ability to support another 40,000 m² of future distribution space.

With a 660,800 m² portfolio, Prologis is one of the largest providers of distribution space in the Netherlands. Other customers in the region include DHL, UPS, Antalis and Geodis.