Media update: Prologis Italy | full year 2021 operating results and outlook for 2022
"2021 exceeded our expectations both in terms of developments and leases. The Italian logistics real estate market has been experiencing significant growth in recent years, driven both by the need to modernise Italian logistics parks to bring them into line with the most advanced countries in Europe and to meet the changing needs of e-commerce, food and pharmaceutical companies," commented Sandro Innocenti, Senior Vice President and Country Manager, Prologis Italia. "Prologis is leading the way by moving beyond simply creating technologically advanced modern buildings and think how to integrate logistics parks with the local communities. This is where our PARKlifeTM philosophy goes beyond just providing new services within our parks. It is about anticipating the needs of local communities through major investments in environmental mitigation, road works, fully sustainable buildings and infrastructure that will benefit the quality of life of the local residents while providing them with job opportunities and thus growth."
“2022 is shaping up to be another year of strong market demand for fully sustainable Class A build-to-suit spaces and facilities located near Italy's major urban centres. The demand for urban logistics continues to grow, while the ecological transition is increasingly on the minds of forward-thinking customers who are looking to the next 10 years from the standpoint of electric mobility, future propulsion technologies and net-zero transport," concluded Sandro Innocenti.
Main market trends – Italy:
- For the fifth year in a row, the occupancy rate for our properties remained at record levels (98.9%), and the percentage of customers who chose to stay and continue developing their business in Prologis buildings also remained stable;
- Rising rents amidst a shortage of modern, sustainable and strategically located logistics properties on the market;
- Market demand for build-to-suit buildings remains strong nonetheless, and there is also significant growth in demand for urban distribution, with a strong focus on sustainability and the redevelopment of brownfield sites;
- Pharma, food, e-commerce, luxury goods and last-mile logistics continue to drive demand for logistics space
Operating performance at 31 December 2021
At the year-end, we had an occupancy rate for our buildings in Italy of 98.9%, compared with the European average of 96.6%.
At 31 December 2021, in Italy, Prologis owned and managed around 1.36 million square metres of logistics space located in 64 buildings in three strategic areas:
- Milan: Paullo, Lodi, Novara, Piacenza, Cornaredo, Siziano
- Bologna: Interporto
- Rome: Tiburtina, Anagni, Fiano Romano
At the end of 2021, Prologis had a further 79 hectares of land available for development.
Investments in 2021
In 2021, we completed and delivered 116,000 square metres of build-to-suit and speculative buildings. In detail:
- 12,797 square metres for Esselunga, Milan (urban logistics);
- 4,020 square metres for SDA, Milan (urban logistics);
- 17,350 square metres for a food and beverage operator, Cassina de Pecchi (near Milan)
- 45.000 square metres for Geodis, Piacenza;
- 15,000 square metres for Bomi Group, Bologna
- 21,400 square metres for SDA, Bologna
There were no disposals during the year. During the year, we acquired:
- 50,600 square metres of logistics assets in the "La Rustica" area of Rome;
- 5,100 square metres in the Tiburtina area of Rome;
In 2021, 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. In 2021, Prologis installed an additional 6.06 megawatts of solar power systems (3.7 megawatts: 2020), bringing total electricity production to 10.2 megawatts. Through the SolarSmart installations in Italy, Prologis reduces CO2 emissions by approximately 6,000 tonnes.
During 2021, at the Prologis Park Lodi, we started and completed, in collaboration with Ceva Logistics, the pilot project inspired by the PARKlife™ philosophy developed by Prologis globally.
Within the logistics park in Lodi, various works have been carried out aimed at making the park more attractive and comfortable, adding new services tailored to the needs of park-based employees and visitors. In addition to the introduction of 8 urban art works covering 44,000 square metres of building façades, elements were introduced to concretely improve the well-being of the park’s users. These include washrooms with showers for lorry drivers, new sheltered walkways and areas to provide shade in the hottest months of the year, outdoor seating for socialising, table tennis, areas for eating and drinking equipped with vending machines, and green areas with brightly coloured plants to make the park a nicer place to be, as well as increasing the amount of shade.
The PARKlife™ philosophy will be extended to other Prologis logistics parks in Italy over the course of 2022.
Prologis Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of 31 December 2021, Prologis held consolidated investments or co-investment ventures totalling an estimated 93 million square metres in 19 countries. The company leases modern logistics facilities to more than 5,800 customers operating in B2B and e-commerce/online fulfilment.
Patrick Trancu I TT&A Advisors I Cell. 335 230789 I E-mail [email protected]