Month: October 2019

Logistics real estate giant Prologis has released its third quarter financial numbers. European highlights picked out by the company are listed below.

• Demand remains healthy and customer sentiment holds. Supply chain reconfiguration remains a top priority.
o Demand hot spots were Germany and Poland
• Supply is driving divergence of markets, as land constraints drive capital to the markets with ample land, causing a surge in (spec) supply there.
o Rent growth strong in land-constrained markets
o Spec is slightly up, more than 50 per cent of volume.
o Supply hot spots were in order; Poland, the United Kingdom and the Netherlands
• Capital interest rises further, while cap rates continue to compress (-4bps q/q, -19bps y/y)
o Values (PLD) grew 2.1% q/q

Operating Performance as of September 30, 2019:

– Total portfolio: 17,5 million square metres*
– Period-end occupancy: 96.7%
– Total leasing activity: 671,715 square metres:
o 264,333 square metres of new leases
o 407,382 square metres of lease renewals

*includes: operating, development, held for sale, other and VAA/VAC

Capital Deployment – third quarter activities

Development
– Total development activity in the third quarter ran at 219,703 square metres:
o Eight build-to-suit starts with a combined total of 142,695 square metres in Germany, Italy, the Netherlands, Poland, Slovakia and the United Kingdom
o Three speculative starts at a combined total of 77,008 square metres in France, Italy and the Netherlands

Acquisitions & Dispositions
– 15 buildings were acquired with a total net rentable area of 370,642 square metres in Hungary, Spain and the United Kingdom
– 4 land parcels were acquired with a total land area of 111,787 square metres in France, Germany and the Netherlands

– Two building dispositions took place, totalling 27,225 square metres in Italy and one land parcel of 41,966 square metres was sold in the United Kingdom

Highlights:
– Carbon-neutral facility at Muggensturm, Germany, wins LogixAward at Muggensturm
– Colonial acquisition: largest European logistics portfolio transaction to date of 2019
– European Prologis colleague raise funds for vital cancer research through Stelvio for Life

Logistics real estate giant Prologis has released its third quarter financial numbers. European highlights picked out by the company are listed below.

• Demand remains healthy and customer sentiment holds. Supply chain reconfiguration remains a top priority.
o Demand hot spots were Germany and Poland
• Supply is driving divergence of markets, as land constraints drive capital to the markets with ample land, causing a surge in (spec) supply there.
o Rent growth strong in land-constrained markets
o Spec is slightly up, more than 50 per cent of volume.
o Supply hot spots were in order; Poland, the United Kingdom and the Netherlands
• Capital interest rises further, while cap rates continue to compress (-4bps q/q, -19bps y/y)
o Values (PLD) grew 2.1% q/q

Operating Performance as of September 30, 2019:

– Total portfolio: 17,5 million square metres*
– Period-end occupancy: 96.7%
– Total leasing activity: 671,715 square metres:
o 264,333 square metres of new leases
o 407,382 square metres of lease renewals

*includes: operating, development, held for sale, other and VAA/VAC

Capital Deployment – third quarter activities

Development
– Total development activity in the third quarter ran at 219,703 square metres:
o Eight build-to-suit starts with a combined total of 142,695 square metres in Germany, Italy, the Netherlands, Poland, Slovakia and the United Kingdom
o Three speculative starts at a combined total of 77,008 square metres in France, Italy and the Netherlands

Acquisitions & Dispositions
– 15 buildings were acquired with a total net rentable area of 370,642 square metres in Hungary, Spain and the United Kingdom
– 4 land parcels were acquired with a total land area of 111,787 square metres in France, Germany and the Netherlands

– Two building dispositions took place, totalling 27,225 square metres in Italy and one land parcel of 41,966 square metres was sold in the United Kingdom

Highlights:
– Carbon-neutral facility at Muggensturm, Germany, wins LogixAward at Muggensturm
– Colonial acquisition: largest European logistics portfolio transaction to date of 2019
– European Prologis colleague raise funds for vital cancer research through Stelvio for Life

Clark Europe has found a new sales partner for Israel with M.N. Systems with effect from 1st May 2019. With this appointment, the industrial truck manufacturer looks to expand its strong position in the Near and Middle East region.

M.N. Systems was founded in 1986 and is located in the Emek-Hefer Industrial Park near Netanya. The company began its operations in the heavy commercial vehicle sector and rapidly developed into a leading expert in the distribution of spare parts and components for workshops and manufacturers of trailers, semi-trailers, buses and trucks in Israel. Over the years, M.N. Systems has expanded its offering to include a variety of products such as vehicle systems, axles and suspensions, hydraulic and braking systems, electrical systems and components, traction batteries for forklift trucks, solar battery solutions including control panels, controllers and inverters, workshop accessories and accessories for buses & trucks, driver seats and seat systems for heavy equipment and forklift trucks, horse trailers and caravan accessories and spare parts.

As Clark’s partner in Israel, M.N. Systems will distribute the full Clark product range. In addition to all forklift classes and warehouse equipment trucks, this also includes all accessories and spare parts as well as services such as rental and maintenance for Clark new and used materials handling vehicles. With around 90 employees, M.N. Systems ensures professional sales with advice and customer support as well as fast service within Israel and the Palestinian territories.

“With M.N. Systems, we will further strengthen our market position in Israel and expand our business with customers in the Middle East. We are looking forward to the cooperation”, said Rolf Eiten, President & CEO of Clark Europe GmbH, at the signing of the contract.

Industrial door provider Hörmann UK has launched its new FlexFire Protection Curtain, specifically designed to provide the construction and other industrial sectors with unrivalled smoke protection in the event of a fire.

Equipped with an intelligent FSA-FLEXControl hold-open device as standard, the curtain closes reliably if smoke develops. When combined with optical smoke detectors that monitor the door area, the hold-open device is compliant with the requirements outlined in EN 14637. The system can also be connected to the on-site fire alarm system for a complete fire protection offering, supported by an optional battery pack to bridge potential power failures.

Tested for fire loads of up to 120 minutes, the FlexFire Protection Curtain is both lightweight and compact, according to Hörmann. Its innovative construction features narrow side guides, which means the fire-proof textile curtain can be installed and remain inconspicuous to the internal structure of the building, for a seamless finish.

The curtain features concealed magnetic contacts fitted on the side guide to aid fast installation. This is also supported by a space saving shaft-housing unit with integrated tubular drive, which enables almost invisible integration to a building’s infrastructure.

If operated in combination with the FSA-FLEXControl Unit and line-monitored tubular drive, the system performs a full automatic teach-in run without the need for any mechanical adjustments, simplifying installation. Preassembled wiring also makes the door system very easy to fit and service.

Tom Langley, Projects Director for Hörmann UK, said: “Our new FlexFire Protection Curtain has been specifically designed to provide the highest standards in fire and smoke protection and meet all the relevant regulations. We are committed to continuous product development that offers innovative solutions to meet the ever-changing needs of our wide client base and our latest launch is reflective of this.”

The FlexFire Protection Curtain is available in galvanised steel as standard, with the opportunity to customise components in a RAL colour to suit the interior design of the building.

Industrial door provider Hörmann UK has launched its new FlexFire Protection Curtain, specifically designed to provide the construction and other industrial sectors with unrivalled smoke protection in the event of a fire.

Equipped with an intelligent FSA-FLEXControl hold-open device as standard, the curtain closes reliably if smoke develops. When combined with optical smoke detectors that monitor the door area, the hold-open device is compliant with the requirements outlined in EN 14637. The system can also be connected to the on-site fire alarm system for a complete fire protection offering, supported by an optional battery pack to bridge potential power failures.

Tested for fire loads of up to 120 minutes, the FlexFire Protection Curtain is both lightweight and compact, according to Hörmann. Its innovative construction features narrow side guides, which means the fire-proof textile curtain can be installed and remain inconspicuous to the internal structure of the building, for a seamless finish.

The curtain features concealed magnetic contacts fitted on the side guide to aid fast installation. This is also supported by a space saving shaft-housing unit with integrated tubular drive, which enables almost invisible integration to a building’s infrastructure.

If operated in combination with the FSA-FLEXControl Unit and line-monitored tubular drive, the system performs a full automatic teach-in run without the need for any mechanical adjustments, simplifying installation. Preassembled wiring also makes the door system very easy to fit and service.

Tom Langley, Projects Director for Hörmann UK, said: “Our new FlexFire Protection Curtain has been specifically designed to provide the highest standards in fire and smoke protection and meet all the relevant regulations. We are committed to continuous product development that offers innovative solutions to meet the ever-changing needs of our wide client base and our latest launch is reflective of this.”

The FlexFire Protection Curtain is available in galvanised steel as standard, with the opportunity to customise components in a RAL colour to suit the interior design of the building.

The UK logistics market remained resilient in the third quarter of 2019, with take-up of industrial space up 15% compared with the same period last year, according to research from Cushman & Wakefield.

The firm’s Industrial Outlook report for Q3 revealed that take-up for the first nine months of the year was on a par with the five-year average of 24 million sq ft.

Across the quarter, 8.6 million sq ft of space was transacted, however the number of deals completed fell by 17% and 33% on an annual and quarterly basis respectively, indicating a degree of Brexit-related nervousness among many occupiers.

Third-party logistics providers (3PLs) remained active accounting for 29% of deals completed since the start of the year with take-up in this sector driven, not only by occupiers stockpiling in preparation for Brexit, but retailers utilising specialist logistics providers to navigate increasingly complex supply chain fulfilment.

Take-up volumes in the manufacturing sector, which accounted for 53% in Q3, were boosted by JLR’s decision to consolidate 10 existing depots into a new 2.9 million sq ft global parts distribution centre to be built in Appleby Magna in the East Midlands, which was the largest deal of the year to date.

The report, which tracks enquiries for units over 50,000 sq ft, also revealed that take-up in London, South East, East Midlands and Yorkshire was above the five-year average, with notable deals including Ocado taking 304,000 sq ft at at SEGRO Park Purfleet in East London.

The availability of industrial stock rose by 6% year-on-year to 64.2 million sq ft in Q3, equating to two years’ supply at current take-up rates with less than half of this (44%) classed as Grade A quality.

Data also showed that 2019 to date has been a record year for speculative completions with 14 million sq ft due to be delivered to the market this year, however the volume of speculative construction looks set to slow down through 2020.

Preliminary figures to date suggest that logistics investment is circa 40% down compared to the corresponding period last year largely due to the current economic and political landscape. Despite this, logistics continued to outperform other commercial property sectors with long-income and strong covenants remaining highly sought after and commanding keen yields.

Bruno Berretta, UK Logistics & Industrial Research & Insight, Cushman & Wakefield, said: “The market is generally more favourable to the occupier than 12 months ago. However, the level of occupier choice continues to vary substantially from one submarket to another and across size bands. Availability remains relatively tight for some product types even in regions that have seen greater levels of speculative development which is supporting rental growth.”

Richard Evans, Head of UK Logistics & Industrial, Cushman & Wakefield, commented: “Despite the business uncertainty caused by the ongoing Brexit situation, the logistics and industrial market has continued to outperform other sectors. The structural changes in the retail sector and the increasing focus on supply chain efficiencies are just two of the key drivers which give us confidence that market demand will remain robust.”

The UK logistics market remained resilient in the third quarter of 2019, with take-up of industrial space up 15% compared with the same period last year, according to research from Cushman & Wakefield.

The firm’s Industrial Outlook report for Q3 revealed that take-up for the first nine months of the year was on a par with the five-year average of 24 million sq ft.

Across the quarter, 8.6 million sq ft of space was transacted, however the number of deals completed fell by 17% and 33% on an annual and quarterly basis respectively, indicating a degree of Brexit-related nervousness among many occupiers.

Third-party logistics providers (3PLs) remained active accounting for 29% of deals completed since the start of the year with take-up in this sector driven, not only by occupiers stockpiling in preparation for Brexit, but retailers utilising specialist logistics providers to navigate increasingly complex supply chain fulfilment.

Take-up volumes in the manufacturing sector, which accounted for 53% in Q3, were boosted by JLR’s decision to consolidate 10 existing depots into a new 2.9 million sq ft global parts distribution centre to be built in Appleby Magna in the East Midlands, which was the largest deal of the year to date.

The report, which tracks enquiries for units over 50,000 sq ft, also revealed that take-up in London, South East, East Midlands and Yorkshire was above the five-year average, with notable deals including Ocado taking 304,000 sq ft at at SEGRO Park Purfleet in East London.

The availability of industrial stock rose by 6% year-on-year to 64.2 million sq ft in Q3, equating to two years’ supply at current take-up rates with less than half of this (44%) classed as Grade A quality.

Data also showed that 2019 to date has been a record year for speculative completions with 14 million sq ft due to be delivered to the market this year, however the volume of speculative construction looks set to slow down through 2020.

Preliminary figures to date suggest that logistics investment is circa 40% down compared to the corresponding period last year largely due to the current economic and political landscape. Despite this, logistics continued to outperform other commercial property sectors with long-income and strong covenants remaining highly sought after and commanding keen yields.

Bruno Berretta, UK Logistics & Industrial Research & Insight, Cushman & Wakefield, said: “The market is generally more favourable to the occupier than 12 months ago. However, the level of occupier choice continues to vary substantially from one submarket to another and across size bands. Availability remains relatively tight for some product types even in regions that have seen greater levels of speculative development which is supporting rental growth.”

Richard Evans, Head of UK Logistics & Industrial, Cushman & Wakefield, commented: “Despite the business uncertainty caused by the ongoing Brexit situation, the logistics and industrial market has continued to outperform other sectors. The structural changes in the retail sector and the increasing focus on supply chain efficiencies are just two of the key drivers which give us confidence that market demand will remain robust.”