ProLogis to Develop 860,000SF Pre-Leased Distribution Facility in Spain
- May 07, 2008
ProLogis has unveiled plans to develop and lease an 860,000-square-foot industrial facility in northern Spain to Bosch-Siemens Home Appliance. The building (pictured) will be developed in Zaragoza, a growing distribution hub situation halfway between Madrid and Barcelona. BSH, which currently operated seven factories and two offices in Spain, will use the space, located along the A-2 Highway, to distribute its brand-name cooktops, ovens, washing machines, refrigerators, dishwashers and small electronics to its network of retailers in southern Europe. The warehouse will feature sustainable design features and technologies, including roof-mounted solar panels that generate electricity, a rainwater storage system, energy-efficient lighting and water-efficient landscaping. The site will also have direct access to rail. The building is ProLogis’ second distribution center in the Zaragoza area; the other, a 516,000-square-foot facility fully leased to ARC International, a tableware supplier, was completed earlier this year and also features environmental design and construction. Gustavo Cardozo, ProLogis’ first vice president & market director of Spain, told CPN that Zaragoza is quickly becoming an important industrial market, the two biggest being Madrid and Barcelona. “It’s in a good location with good infrastructure, motorways and rail connections,” he said. The price is also right: land currently goes for approximately $12 to $17 per square foot, or approximately $500,000 to $750,000 per acre. Zaragoza, however, is mostly a market for build-to-suits and not speculative development, according to Cardozo.ProLogis is one of the largest providers of industrial space in Spain, with approximately 5.3 million square feet owned, managed or under development. Cardozo said that the Spanish industrial market, as a whole, is still growing, especially with demand from companies looking to vacate obsolete facilities. He expects that ProLogis will double its inventory in the country over the next two or three years in response to the high growth. Overall, ProLogis is the world’s largest owner, manager and developer of distribution facilities, with operations across 121 markets in North America, Europe and Asia. The company has $38.8 billion worth of owned, managed and under-development assets, comprising 526.3 million square feet in 2,817 properties. In the past few weeks alone, ProLogis has announced leases and developments in Rome, Tokyo, South Korea and Nanjing, China. The company was also recently included on the list of Fortune 500 companies.