Prologis Extends Leasing in Brazil - Analyst Blog
March 19 2013 - 10:50AM
Zacks
San Francisco-based industrial real estate investment trust
(REIT), Prologis Inc. (PLD) announced the leasing
of 239,000 square feet in a Brazil development project. The
agreement was penned with Brazil's largest bookstore chain and
leading online retailer – Saraiva.
With this deal, the two million square foot Prologis CCP Cajamar I
Industrial Park is now 100% pre-leased and Saraiva will occupy the
final building at the Industrial Park. Notably, Prologis CCP is a
joint venture between Prologis and Cyrela Commercial Properties
(CCP). This particular industrial park is strategically located in
the Cajamar submarket of Sao Paulo and close to Rodoanel Ring Road
and central Sao Paulo.
In Brazil, there is an increased demand for Class-A facilities
resulting from growth in e-commerce. To better serve customers and
reduce delivery time, firms are seeking a consolidation of
distribution networks and are settling in the vicinity of
population centers.
Prologis stands to benefit from this move as it has the capacity to
offer modern distribution facilities in strategic infill locations.
Its joint venture, Prologis CCP is a leading provider of industrial
real estate in Brazil, and as of Dec 31, 2012, it had over 8.7
million square feet developed or to be developed in the
country.
Moreover, recently Prologis announced the initiation of a new
development project – Prologis Park Kawajima 2 – in Japan. The move
is aimed at strengthening Prologis’ position as one of the leading
providers of industrial real estate in Asia.
Prologis is significantly capitalizing on the growing opportunities
across the globe. In addition, continued lease-up of development
portfolio is considerably helping Prologis in reducing its
operating risks. Also, the company has been actively spreading
itself worldwide through joint ventures. We believe such strategic
moves will help augment the company’s top line, going forward.
Prologis currently holds a Zacks Rank #3 (Hold). Other REITs that
are performing better and are worth a look include Ryman
Hospitality Properties Inc. (RHP), Omega
Healthcare Investors (OHI) and Cousins Properties
Inc. (CUZ). The first two carry a Zacks Rank #1 (Strong
Buy), while the latter holds a Rank #2 (Buy).
COUSIN PROP INC (CUZ): Free Stock Analysis Report
OMEGA HLTHCARE (OHI): Free Stock Analysis Report
PROLOGIS INC (PLD): Free Stock Analysis Report
RYMAN HOSPITLTY (RHP): Free Stock Analysis Report
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