Kuehne & Nagel deal sees ProLogis grow again
ProLogis, the US based provider of distribution facilities, and Swiss forwarder Kuehne & Nagel have announced a new deal for a 15,000 sq m facility in Norrkoping in Sweden. The agreement will see Prologis develop the distribution facility on a ‘build-to-suit’ basis and then lease it to the logistics provider. The facility is on a multi-modal site which will provide Kuehne & Nagel with road, sea and rail links.
ProLogis has an existing portfolio of warehousing facilities in Sweden and the deal will see this increase to over 80,000 sq m. Although Kuehne & Nagel presently leases 22,878 sq m of space from Prologis in the US this is the first time it has entered into a relationship with the company in Europe.
The warehouse leaser has been highly active over the past few months. It recently signed its sixth agreement with French logistics company, ID Logistics, for a 26,224 sq m facility in France, taking the total leased by the operator to over 160,000 sq m. Also in France it signed a deal with tyre manufacturer Bridgestone for 22,818 sq m facility in Evry. In Germany in March it signed an agreement with fashion retailer C&A in Stuttgart for an additional 6,500 sq m. Prior to this Geodis and ProLogis announced a number of major deals.
A recent study published by ProLogis asserts that European unification and integration have created intense cross-border competition, which in turn has encouraged many European logistics companies, manufacturers and retailers to dispose of their distribution properties and lease modern, purpose built facilities. This has also allowed them to re-deploy their capital to more productive uses. This trend has meant that ProLogis has been able to grow strongly in Europe over the past few years, despite the economic downturn.
