Busy Few Days for ProLogis with Development, Acquisition, Hiring News
- May 14, 2008
The week is only half done and already ProLogis has announced plans for a 220,000-square-foot build-to-suit in Hungary, the purchase of 83 acres in Virginia, and the appointment of a new global executive.UTi (Hungary) Logistics L.L.C. has called on Denver-based ProLogis to develop a 220,000-square-foot facility in Budapest for use as a regional distribution center for a client. The build-to-suit structure will sit approximately 10 miles from Downtown Budapest within ProLogis Park Budapest-Sziget, which currently consists of 870,000 square feet but will reach 1.8 million square feet at full build-out. UTi, a leading supply chain solutions provider that already leases from ProLogis in Europe and the United States, expects to further expand its presence in the area in the future to accommodate a growing demand for manufacturing and logistics services.ProLogis already has a strong presence in the Budapest area with, as of February 2008, five parks featuring a total of over 3.2 million square feet; included in the portfolio is the 1.4 million-square-foot ProLogis Harbor Park, where food and personal care products manufacturer Unilever leased 295,000 square feet of warehouse space three months ago. Taking on the position of executive director of global operations, new hire Diane Paddison will likely play a role in ProLogis’ expansion in Hungary and beyond. A 20-year real estate industry veteran, she previously held the position of president of client accounts in global corporate services at commercial real estate services firm CB Richard Ellis Inc. Paddison will have a dual role at ProLogis, as she has also been appointed president & COO, a job she will take over from current president & COO Walter Rakowich next year.On the domestic front, ProLogis continues its corporate strategy of expanding in core seaport markets with the acquisition of 83 acres in Suffolk, Va.’s Northgate Commerce Park. Two sellers were involved; Upton Farms Inc. sold the company 69 acres, and the City of Norfolk Economic Development Authority forked over the remaining 14 acres. Real estate services firm CB Richard Ellis Inc. represented ProLogis in the land purchase, while seller Upton Farms relied on the firm Harvey Lindsay. ProLogis intends to develop a 2.1 million-square-foot warehouse park on the land; a plan that will, according to CBRE brokers, further strengthen the Hampton Roads area as a leading East Coast distribution hub. In 2007, Hampton Roads ranked no. 7 out of 50 on the American Association of Port Authority’s North American Port Container Traffic statistical report. With operations spanning 121 markets in North America, Europe and Asia, ProLogis is the largest owner, manager and developer of distribution faculties in the world. As of the close of the first quarter, the company’s portfolio of owned, managed and in-progress properties encompasses 526.3 million square feet of space in 2,817 properties valued at an aggregate $38.8 billion. Company stock opened today at $64.75.