STRONG demand for modern industrial real estate has led Prologis, an international owner, operator and developer of industrial real estate, to build new premises in Slovakia as speculative projects, i.e. without any pre-leasing or commitment from tenants.
“By analysing market trends and customer demand, we were able to make a sound case for speculative development in Slovakia,” said Martin Polák, vice president and market officer for the Czech Republic and Slovakia at Prologis, as quoted in a company press release. “We are pleased to see that this decision was justified, given that 70 percent of the facility is leased and we are committed to further leveraging market demand to drive growth.”
Prologis signed two new lease agreements in the first quarter of 2013 at Prologis Park Bratislava DC7. The site is now 70-percent leased, with one 7,800 square metre unit still available.
The new leases include 11,900 square metres with DSV, a supplier of transport and logistics services operating in more than 70 countries worldwide, and 4,800 square metres with SHT Technopoint, a wholesaler of sanitary equipment which is a subsidiary of SHT Gruppe, the market leader in Austria.
Prologis launched work on the new project last year, prompted by what it said was strong market demand for modern, strategically-located logistics facilities and the lack of available space in its Slovak portfolio. The company plans to extend Prologis Park Bratislava by 47,000 square metres; the first phase, covering 24,500 square metres, was completed in the third quarter of 2012.
Prologis is the leading provider of industrial space in Slovakia, with three distribution parks located in Bratislava (Senec), Galanta (Gáň) and Nové Mesto nad Váhom, totalling 430,000 square metres, as of 31 December 2012. Its Prologis Park Bratislava is site alongside an exit from the country’s main D1 highway. It currently consists of seven distribution facilities totalling more than 208,000 square metres.
Real estate consultancy company CBRE estimates Prologis’ share of the Slovak industrial real estate market at 34 percent for 2013, followed by PointPark Properties with 10 percent and HB Reavis and CPI Group, both with 9-percent shares.
