Prologis, the leading global owner, operator and developer of industrial real estate, today announced the formation of a 50 / 50 joint venture with DP World to develop a 316, 000 square foot distribution centre at London Gateway Logistics Park.
The new facility, which will be built speculatively, is designed to offer flexible distribution space. The single-sided, 15-metre-high unit has a 55 metre yard and space for potential expansion. The building has been designed to achieve BREEAM 2011 ‘very good’ accreditation and the best Energy Performance Certificate (EPC) rating for its size.
The park, which is one of the largest multi-modal logistics hubs in Europe, is located next to the DP World London Gateway container port, on the north side of the River Thames. It is within easy reach of the M25 London orbital motorway and is connected to the national rail network. Strong demand has led to the development being taken forward and groundworks are now underway. The target date for the completed building is spring 2015.
“We are delighted to be developing this new unit with DP World at London Gateway Logistics Park, ” said Andrew Griffiths, managing director, Prologis UK. “This is the best opportunity in the South East to offer multi-modal connectivity. The park has the potential to offer big cost savings and efficiencies for global supply chains and we believe it is a game changer for the UK market.”
Simon Moore, CEO DP World London Gateway, said, “I’m delighted to be able welcome a leading developer of industrial real estate to DP World London Gateway. I’m confident that this partnership will deliver a great development and I’m looking forward to seeing the building work start very soon.”
Peter Ward, commercial director, DP World London Gateway, said: “DP World London Gateway offers unique supply chain advantages. The location drives out logistics costs as we are closer to the UK’s major areas of consumption than other ports. In addition, London Gateway Logistics Park will help shape the future of the UK’s fast changing retail supply chains by allowing goods to be moved to homes and shops faster, more efficiently and reliably than ever before.”
He continued: “The Prologis facility will go through the new London Gateway Local Development Order (LDO) that is now in place to fast-track development. The LDO massively reduces the planning process, saving huge amounts of time and money, whilst protecting the environment. This is just one example of how we have worked to make it easier for industry to get the best solutions in place, quickly, efficiently and reliably, which is at the heart of what we aim to do.”
Prologis, Inc., is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of March 31, 2014, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 574 million square feet (53.3 million square meters) in 21 countries. The company leases modern distribution facilities to more than 4, 700 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises
About London Gateway
Opened Q4 2013, DP World London Gateway is the UK’s first 21st Century major deep-sea container port and Europe’s largest logistics park. Owned and operated by DP World and situated on the north bank of the River Thames, London Gateway provides unrivalled deep-sea shipping access to the largest consumer markets in the UK. The port’s location, with its superior operational systems and service, ensure ships load and unload as fast as possible, making London Gateway a world class asset for the UK.
About DP World
DP World has a portfolio of more than 65 marine terminals across six continents (1), including new developments underway in India, Africa, Europe, South America and the Middle East.
Container handling is the company’s core business and generates more than three quarters of its revenue. In 2013, DP World handled 55 million TEU (twenty-foot equivalent container units). With its committed pipeline of developments and expansions, capacity is expected to rise to more than 100 million TEU by 2020, in line with market demand.
DP World has a dedicated, experienced and professional team of 28, 000 people serving its customers around the world, and the company constantly invests in terminal infrastructure, facilities and people to provide quality services today andtomorrow, when and where customers need them. www.dpworld.com
(1) As of February 2014.
The statements in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which Prologis operates, management’s beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact Prologis’ financial results. Words such as “expects, ” “anticipates, ” “intends, ” “plans, ” “believes, ” “seeks, ” “estimates, ” variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of properties, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust (“REIT”) status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments in our co-investment ventures and funds, including our ability to establish new co-investment ventures and funds, (viii) risks of doing business internationally, including currency risks, (ix) environmental uncertainties, including risks of natural disasters, and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by Prologis under the heading “Risk Factors.” Prologis undertakes no duty to update any forward-looking statements appearing in this release.