The global real estate investment trust Prologis has signed two deals to deliver almost a million sq ft of build-to-suit logistics space in China and Mexico.
The biggest contract is for a 500,000sq ft distribution centre in Mexico’s third largest city, Monterrey (pictured), and close to the city’s international airport. The company already owns and manages almost 32 million sq ft of logistics and distribution space in Mexico and the latest facility will be part of Prologis Park Apodaca.
It is being built to the designs of Uline, a distributor of shipping, industrial, and packing materials to businesses throughout North America, and whose executive vice-president is Phil Hunt.
“This new centre will allow Uline to increase the amount of inventory stocked in Monterrey, enabling us to provide our customers with same-day shipping on all orders,” he explained. “Prologis is an important partner in our expansion efforts, and this state-of-the-art building will support our growth in Mexico.”
Still under development, the completed Apodaca Park will eventually consist of six buildings totalling 1.4 million sq ft with enough land left over to support an additional two-million sq ft of expansion and support services.
Prologis’s Latin American president, Luis Gutierrez, said there was now a real need for Mexican distribution centres. “Business and public consumption is driving solid demand for high-quality logistics facilities throughout the country,” he added, “and we are well suited to meet this need in the future.”
In a separate deal, the property trust is providing a new 447,000sq ft complex for Deppon Logistics at Prologis Tianjin Ninghe Logistics Centre. It will serve as the Deppon’s regional distribution base for the greater Beijing area.
“The location of this site is ideally suited to meet our distribution needs, which directly enhances the quality of service we can provide our customers,” said Liu Dong, vice-president of operations at Deppon. “The efficient layout of this facility will meet all of our requirements.”
Deppon already leases 1.4 million sq ft of floor space across China from Prologis which, said Gary Anderson, chief executive officer of the firm’s European and Asian divisions, “is committed to developing Class-A distribution facilities to support their business. This project represents our fourth build-to-suit for Deppon and underscores Prologis’s capability to improve logistics infrastructure throughout China”.
