Logistical link-up
ProLogis, a company that manages and develops distribution facilities around the globe, has announced its acquisition of the industrial-development business of Parkridge, a European developer of distribution centers. According to the company, the total compensation for Parkridge amounts $581 (zł.1,737) million in cash and ProLogis' common shares.
"This transaction further extends our leadership position as the largest provider of distribution facilities in Europe," said Jeffrey Schwartz, CEO of ProLogis. "It enables us to expand our presence in existing markets and target markets through the acquisition of one of our top competitors in European industrial development." Schwartz stressed that the latest transaction would strengthen ProLogis' land bank in Central Europe and the UK.
Gary Anderson, president and CEO for ProLogis Europe, said that the transaction resulted in acquiring 213,300 sqm of completed buildings in Poland in addition to a significant number under construction, as well as a land bank for future development - "all of which is completely complementary to our strategic plans for the region and for Poland specifically," explained Anderson.
Through the acquisition, ProLogis' will add four existing Parkridge logistics parks to the 10 it already owns.
Dominik Witkiewcz, an analyst from King Sturge, said that Poland's distribution and logistics market became more competitive when Parkridge began operations here two years ago. "These transactions will result in decreasing the number of major parties offering industrial development in Poland. However ProLogis has gained significant plots that can be used for future development upon a client's demand," he said. "But this acquisition might also bring major advantages for customers, because a strong logistics-and-distribution network covering the whole of Poland has been created," Witkiewicz added.
Witkiewicz explained that Poland's logistics and distribution market will be dominated by ProLogis. However, two other developers, Slough Estates and Panattoni, also with significant international reach, are set to increase their portfolios in Poland.
