Media update: Prologis Italy | fourth quarter and full year 2020 operating results
We are delighted to announce the results achieved by Prologis in Italy in 2020.
Main market trends—Italy:
- It was a positive end to the year, with a very high occupancy rate for the fourth year in a row
- With favourable market conditions, much of the available space is taken up, leading to new speculative developments
- Market demand for build-to-suit buildings remains strong nonetheless
- Pharma, food and e-commerce continue to drive demand for logistics space
Operating performance in 2020
At the year-end, we had an occupancy rate for our buildings in Italy of 99.0%, compared with 97.8% the previous year and the European average of 96.7%.
At 31 December 2020, in Italy, Prologis owned and managed around 1.16 million square metres of logistics space located in 59 buildings in three strategic areas:
- Milan: Paullo, Lodi, Novara, Piacenza, Cornaredo, Siziano
- Bologna: Interporto
- Rome: Tiburtina, Anagni, Fiano Romano
At the end of 2020, Prologis had a further 88 hectares of land available for development.
Investments in 2020
In 2020, we embarked on the construction of new build-to-suit (BTS) and speculative Class A logistics buildings for a total of some 48,200 square metres. In detail:
- 9,172 square metres for SDA, Bologna
- 6,100 square metres for Zeroquattro Logistica, Bologna
- 4,020 square metres for national and international delivery partners, Milan
- 11,560 square metres for a supermarket retailer, Milan
- 17,350 square metres for a food and beverage operator, Cassina de Pecchi (near Milan)
During the year, we completed and delivered 116,000 square metres of build-to-suit and speculative buildings:
- 22,000 square metres to Number 1; a BTS building in Paullo (near Milan)
- 27,500 square metres to Pe.tra, a BTS building in Brembate (near Bergamo)
- 29,000 square metres to Autotrasporti Vercesi, a BTS building in Pozzuolo Martesana (near Milan)
- 22,500 square metres to Geodis, a speculative building in Piacenza
- 6,100 square metres to Zeroquattro Logistica, a BTS building in Bologna
- 9,172 square metres to SDA, a BTS building in Bologna
Acquisitions and disposals
In 2020, we sold two logistics buildings located in northern and central Italy (in Brembate and Anagni respectively).
During the year, we acquired:
- 11,500 square metres in Cadriano (near Bologna)
- 12,000 square meters in Monterotondo (near Rome)
Also in 2020, we stepped up our efforts to make our logistics parks and buildings in Italy fully sustainable, in line with our ESG objectives.
Prologis Italy is implementing a major energy efficiency programme called SolarSmart, which involves the installation of photovoltaic panels on all our buildings.
Through our SolarSmart installations in Italy, Prologis now has the capacity to produce 3.7 MW of electricity and thereby reduce annual CO2 emissions by around 2,200 tonnes.
Our strategy also includes improving the energy efficiency of the lighting set-ups at our buildings and logistics parks, by installing next generation LED systems that provide more light, and are therefore safer, as well as producing much lower emissions. To date, we have completed the conversion to LEDs at 13 buildings, with total annual energy savings of 2.5 GWh.
Based on its international experience, in Italy Prologis is also developing a new logistics park model called “PARKlife”, which places the same emphasis on the logistics requirements of customers as on the personal needs and well-being of their employees. This represents a significant shift, which aims to transform logistics parks from a workplace into a real community. Prologis logistics parks are therefore increasingly being designed as mini town centres offering a range of services to enhance the working day, encompassing public transport, shops and leisure activities (cycle routes, green spaces, etc.) and providing opportunities for socialising. Moreover, the work spaces are now being designed to provide an attractive, pleasant and bright environment that meets the growing need for employee well-being. Prologis has introduced the first elements of this new way of thinking about logistics parks at its Lodi and Piacenza sites.
With the aim of building closer relationships with its customers, in 2020 Prologis launched the “Prologis Essentials Marketplace” in Italy, an online procurement platform that enables Prologis customers to organise, integrate or upgrade their warehousing operations using technology and sustainable products and services offered at competitive prices. With Prologis Essentials Marketplace, customers can access a range of products and services, such as shelving systems and forklifts, via managed processes that enable them to equip a warehouse from scratch or update an existing facility. These services will continue to be developed in 2021.
Prologis Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of 31 December 2020, Prologis held consolidated investments or co-investment ventures totalling an estimated 91 million square metres in 19 countries. The company leases modern logistics facilities to more than 5,500 customers operating in B2B and e-commerce/online fulfilment.