ProLogis Leases 200,000 Square Feet in China to DHL
- Global Shipping and Logistics Company to Occupy Distribution Center at ProLogis Park Lingang Near Shanghai's Yangshan Deepwater Port -
SHANGHAI, China, Jan. 11 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), the world's largest owner, manager and developer of distribution facilities, announced today that it has leased 200,000 square feet (18,600 square meters) of industrial space in China to DHL, one of the world's leading providers of delivery and logistics services.
DHL will occupy a newly developed warehouse at ProLogis Park Lingang, located outside Shanghai near the Yangshan deepwater port complex. DHL will use the facility as a primary distribution point for goods leaving and entering China via ocean freight. The first two buildings at the park are now 100 percent leased.
"DHL is one of the world's great companies, with a global reputation for excellence, value and customer service," said Ming Mei, ProLogis managing director and head of China operations. "We're extremely pleased that they have selected ProLogis as their facilities provider in China, and look forward to serving them at their new facility."
"ProLogis Park Lingang offers enormous advantages as a distribution hub, given the unique access it offers to Yangshan," said Victor Mok, senior vice president for DHL in China. "ProLogis is a trusted provider of distribution space to DHL all over the world, and we're very pleased to be working with them again on this strategically important project."
DHL's parent company, Deutsche Post World Net, is ProLogis' largest global customer, with leases in 65 locations in North America, Asia and Europe.
The Chinese government designed the Yangshan deepwater port specifically to accommodate new generations of container vessels that are too large to dock at Waigaoqiao Port in Shanghai. Yangshan, which opened in December 2005, was built on a collection of islands off the Chinese coast and is connected to the mainland by a 20-mile sea bridge. At full buildout, it will be the largest container port in the world, with a total planned capacity of approximately 25 million containers annually.
ProLogis Park Lingang is being developed in the Lingang Industrial Area, a large-scale, government-sponsored development on the land-side end of the Yangshan bridge. The park, which is owned via a joint venture, currently comprises two distribution centers totaling 545,000 square feet (50,600 square meters). A third building totaling 110,000 square feet (10,200 square meters) is currently under construction. At full buildout, the park will be able to accommodate up to 10 million square feet of industrial space.
"With the completed facilities at the park now fully leased, we are actively planning the next phase of construction," Mei said. "We expect to see continued strong interest in the park from manufacturers, third-party logistics providers and other companies seeking to build a market presence in China."
ProLogis entered China in 2004 and has since established a leading position as a provider of industrial distribution facilities. At September 30, 2006, it had 4.1 million square feet (383,000 square meters) in operation and another 3 million square feet (281,000 square meters) under development. In addition to DHL, major customers in China include adidas, L'Oreal, Menlo Worldwide, Nokia, NYK, Samsung, UPS and Yum! Brands.
About ProLogis
ProLogis is the world's largest owner, manager and developer of distribution facilities, with operations in 81 markets across North America, Europe and Asia. The company has $25.3 billion of assets owned, managed and under development, comprising 406.9 million square feet (37.8 million square meters) in 2,406 properties as of September 30, 2006. ProLogis' customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. Headquartered in Denver, Colorado, ProLogis employs more than 1,200 people worldwide.
SOURCE ProLogis
Released January 11, 2007