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Creating OpportunitiesAt Prologis, we work hard to understand our customers’businesses so that we can not only meet, but alsoanticipate their immediate and emerging industrial propertyrequirements. We treat our customers as our strategicpartners and we know that they value this approach;many choose to stay with Prologis when they expand orupgrade their distribution network – both in the UK andaround the world.Because we understand our customers’ operations wecan create new opportunities – in transport infrastructure,buildings and strategic land – which we know will help theirbusinesses. We have good, even pioneering, ideas, butperhaps more importantly, we also have both the resourcesand the expertise to turn them into solid customer benefits.E-commerce is another powerful influence on theindustrial property market and recognising that customersin this - and other sectors - have increasingly bespokerequirements, we have been concentrating on refiningour building design and preparing our prime sites sothat we are ready to start construction work as soon asa deal is signed.The past year has been a very promising one forPrologis and as new ideas gather pace and the market’smomentum continues to grow – we are applying ourselvesto extending the range and scope of opportunities we canbring to our customers.Cost effective, energy efficient buildings and freighttransportation are essential to the future of the sector andat DIRFT III we have taken a significant step towardsproviding a rail-linked distribution park that has thepotential to offer customers the facilities to develop lowcarbon logistics networks.Andrew GriffithsManaging Director & Regional Head UK

04TPN Expands at MidpointPROLOGIS Park, MidpointConstruction work has started on the new 367,500 square footwarehouse that Prologis is building for The Pallet Network (TPN)at Prologis Park Midpoint. The facility, which has been designedto achieve BREEAM 2011 ‘very good’ accreditation and the bestEPC rating possible for its size range, is due to reach completionby the end of the year.The new distribution centre will be the third Prologis buildingthat TPN has occupied. The company originally leased a 224,000square foot unit at Prologis Central Park Rugby before expandinginto the speculatively built 312,000 square foot distributioncentre at Prologis Park Midpoint.“Midpoint is the perfect location for ourbusiness and we are delighted at theprospect of moving to a larger building onthe same site,” said Adam Leonard, Managing Director ofTPN. “Since we are within easy reach of 11 motorway junctionswe can provide the best possible service to our membersand their customers. This new facility will not only allow us todevelop our business, it will also help us to secure our long-termfuture in the West Midlands.”Network Rail Moves to RytonPROLOGIS Park, rytonPrologis has completed the first building at Prologis ParkRyton; a 300,000 square foot distribution centre for NetworkRail. Construction work started last autumn and followingan extensive fit-out programme, the new facility will beoperational in June.Commenting on the reasons that Network Rail choseRyton, Stephen Dady, the organisation’s materials businessmanager explained,“Prologis was able to offer us a facilitythat met the requirements of our partslogistics operations and because planningpermission was already in place, thebuilding has been completed to meetour timetable.”

Bringing Logisticsto SchoolsHelping to educate young people about the logisticsindustry in way that is both exciting and informative,Prologis has signed up as a sponsor of Business onthe Move, a board game that has been developedfor schools by The Very Enterprising CommunityInterest Company.Aimed at pupils across a range of ages and abilities,Business on the Move, challenges players to runtheir own multi-modal logistics business and to run itas efficiently, profitably and responsibly as they can.“Business on the Move is an excellent idea,” saidAndrew Griffiths, Managing Director of Prologis.“The game introduces young people to the conceptof a supply chain in such an engaging way that itcould inspire them to think about future careers inthe logistics industry.”The Very Enterprising Community Interest Companyhas tested Business on the Move with 540 pupils at30 schools and it will be producing 2,800 games fordistribution across the UK.HARD WORK ANDINSPIRATION AT THEARC SCHOOLA team of 25 Prologis employees – with expert guidancefrom Whiting Landscape – have created a sensory gardenand pond area at the Arc School, Churchend, Warwickshire.Catering for pupils from 11-14 years old who have complexbehavioural problems and consequent learning difficulties,the School offers excellent educational opportunities withina caring and therapeutic environment.The Prologis community project has helped to meet all threeof these aims, as Wendy Sanders, acting headteacher said:“The pupils were overjoyed that companies like Prologisand Whiting were taking the trouble to create somewhereas lovely as the sensory garden and pond area just for them.“We were keen that some pupils should help with the workand it has been a great success. Not only did they have awonderful day, but they have gained a degree of confidencethat and I have not seen before and some pupils have beeninspired to pursue landscaping as a career.”Prologis Joins NationalInfrastructure DebateAs the first Nationally Significant Infrastructure Projects maketheir way through the new authorisation regime introduced bythe Planning Act 2008 and the Localism Act 2011, Chris Lewis,First Vice President at Prologis, has been invited to join thepanel discussion at the annual National Infrastructure PlanningAssociation (NIPA) conference.DIRFT III - the 7.8 million square foot rail-served distributionscheme at Daventry that Prologis is promoting together withjoint venture partners BT and Aviva Investors - is the firstdevelopment of its kind to be assessed under the new system.Drawing on his experience of the application process for theDIRFT III project, Chris will represent the private sector point ofview in - what promises to be – a lively discussion.Other conference speakers will include Nick Boles MP,Parliamentary Under Secretary of State for Planning, Sir MichaelPitt, Chairman of the Planning Inspectorate and Dr StephanieHurst, Head of Planning Resources and Environment PolicyDivision, Department for Communities and Local Government.Find out more about Chris’ work on page 15

06prologis newsSustainability Update• Global 100: Prologis has been included in the 2013“Global 100 Most Sustainable Corporations in the World”.Recognised as the world’s most credible corporatesustainability ranking, the Global 100 comprises topperforming companies worldwide based on a range ofsector-specific ‘sustainability’ metrics.• Sustainability Ratings: Prologis has 38 million square feet in11 countries certified by BREEAM, LEED, CASBEE, DGNBor Association HQE.• Solar Power: Prologis has developed a portfolio of more than80 megawatts of photovoltaic system installations in fivecountries to support cost-effective clean energy generation.• Going the Extra Mile: Prologis has provided an electriccar and charging facility at Prologis Park Cologne-Eifeltor,to be used by Objectflor, a Cologne-based designer floorspecialist, for the duration of its lease. The electric car willhelp Objectflor cut CO 2emissions while travelling betweenits sites in Rodenkirchen and Eifeltor.”Work Starts at Hartland ParkIndicative master plan of hartland parkPrologis and M&G Investments, are moving ahead with plans toredevelop Hartland Park, a 119 acre former Ministry of Defencesite close to Junction 4a of the M3 at Farnborough. A demolitionprogramme is now underway and the site will be ready for thestart of construction work in 2014.Hartland Park has detailed planning permission for a total of1.32 million square feet of distribution space in buildings from27,000 square feet upwards. “Hartland Park is one of the fewsites in the south east that can accommodate a wide range ofindustrial, distribution and data centre requirements,” said PaulWeston, Senior Vice President at Prologis.“Now that detailed planning permissionis in place and the demolition contractorsare on site, we are in a position to enterserious discussions with potential occupiersseeking new facilities for occupation from2015 onwards.”

The Power of GlobalRelationshipsDemonstrating the global potential that Prologis can offer itscustomers, Amazon and BMW have recently signed build-to-suitagreements with Prologis in North America.Amazon now occupies Prologis distribution centres in eightmarkets across the world, including two in the UK at MarstonGate and Peterborough. In this latest deal, the companyhas taken over a million square feet at Prologis Park TracyPhase II, Tracy, California, a strategic location close to the westcoast metro areas.Also in California, Prologis is building a 326,000 square footfacility in Redlands, at Prologis Redlands Distribution Center 11.The new building will include an expansion option that offers thepotential to expand the logistics space to 422,500 square feet.BMW has also signed a build-to-suit agreement for 282,000square feet – with the option to expand to 370,000 square feet –at Prologis Park 20/35 in Dallas. The company now has a portfolioof 2.2 million square feet with Prologis in five internationalmarkets, all of which have been built on a build-to-suit basis.

08 prologis news ®Prologis BuildsMomentumOn 20 December 2012, Prologisannounced an agreement to formPrologis European Logistics Partners(PELP), a €2.4 billion joint venture withNorges Bank Investment Management(NBIM). The agreement, which closedin March 2013, not only completedPrologis’ European recapitalisation aheadof schedule, but also marked the endof a very promising year. As AndrewGriffiths, Managing Director of PrologisUK said, “For the first time since 2007, it’sbeginning to feel just a little like businessas usual”

VIEW FROM PROLOGIS HQ, Pier 1 San FranciscoAs the first full year of operation following the merger ofProLogis and AMB Property Corporation, 2012 was a significant– and productive - milestone for the company. As well as PELP,Prologis announced the formation of a Japanese investmentvehicle, while other global achievements included a recordleasing volume of 145 million square feet and $1.6 billion ofnew development starts.Hamid Moghadam, the Prologis Chairman and CEO explained,“Our business continued to strengthen as global demandfor high quality logistics facilities increased, due to growingconsumption and supply chain reconfiguration.”The formation of PELP, which on closing acquired a stabilisedportfolio of 195 Prologis properties totalling around 49 millionsquare feet, underlines the growing strength of the Europeanmarket as well as the value of Prologis’ facilities and itsoperating expertise.The joint venture is Norges Bank’s first investment in theindustrial sector and as Karsten Kallevig, chief investmentofficer for real estate, NBIM said, “We are very pleased to beteaming up with a partner of Prologis’ calibre as we enter themarket for industrial real estate and we look forward to workingtogether on future endeavours.”Hamid MoghadamPrologis Chairman and CEO

10prologis newsMulti-Channel Retail: A Logistics ChallengeWith the inexorable growth of e-commerce,traditional retailers are developingmulti-channel capabilities to support thegrowth of the online marketplace.Multi-channel retailing has its specificlogistics requirements and these, asMark Hewitt Managing Director of iForcepoints out, areset to become aninfluential forcein the distributionproperty market.Mark HewittManaging DirectorA Growing TrendWith around 1.2 million square feet of warehousing acrossseven sites, iForce specialises in multi-channel logistics forretailers such as John Lewis, Cath Kidston, Fortnum & Mason,B&Q and House of Fraser. These traditional retailers areputting an increasing emphasis on their online business –John Lewis, for example, has recently joined the Collect+scheme – and Mark Hewitt believes that multi-channelretail will expand rapidly.“Research shows that online sales in theUK will see a compound annual growth of11%, which means that internet purchaseswill account for more than 20% of retailingby 2016,” he says.“The retail market is notgrowing – it is simply moving online.“This trend has been accelerated by the success of Click& Collect. For some of our clients, around 70% of thegoods that go through our warehouses are destined forClick & Collect customers.”

iforce at Sainsbury’s PROLOGIS eurohub, Corby256,000 sq ftLocation, Location, LocationLike other e-commerce operations, such as ‘dark stores’and parcel hubs, multi-channel distribution centres have aspecific set of requirements and for companies such asiForce, the priority is location.“We need to be close to our client’s warehouses so that wecan replenish our stock quickly and easily,” says Mark Hewitt.“Our business is about throughput rather than storage.”Along with easy motorway access and a good local workforcewith a strong temporary labour pool, multi-channel logisticscompanies are looking for competitive, highly flexible termsand they are starting to move out of the prime markets towardssecondary centres such as Stoke, Stafford and Crewe.While their location requirements are specific, the multi-channeloperators have been less prescriptive about the warehousesthemselves. They look for buildings in a range of sizes andthey do not need highly specialised facilities. High bay storage,for example, is unnecessary and they tend not to specify aparticular number or type of dock door.However, this relatively uncomplicated approach is setto change. “As demand grows, we will need largere-fulfilment warehouses to accommodate the picking area,”continues Mark Hewitt. “Conceptually, multi-level buildingswould be perfect.”E-commerce: Prologis Market Data• Every new € 1 billion of online sales resulted in an extra warehousedemand of approximately 775,000 square feet in the UK, Germanyand France over the past five years• In 2012, 20% of Prologis BTS development in Europe wasfor e-commerce customers• In the UK, 12% of Prologis’ overall portfolio supports e-commerce

DIRFT IIIA decision on the DIRFT III application is expected bysummer 2014 and Prologis could start construction on thefirst buildings two years later.“Our customers are becoming increasingly interested inrail freight,” continued Robin Woodbridge. “With growingroad congestion, rising fuel costs and the need to capturecarbon savings, companies can see that rail freight is ahuge opportunity for logistics.”“With growing road congestion, risingfuel costs and the need to capture carbonsavings, companies can see that rail freightis a huge opportunity for logistics.”DIRFT IIDIRFT IIndicative illustration

14prologis newsLeading the Way: PrologisAdvises the Highway AgencyFive years ago, Chris Lewis, First VicePresident at Prologis UK realised thatsomething had to be done to improverelationships between developers andthe Highways Agency (HA). Realisingthat helping the HA respond effectivelyto the planning and development processwas the main priority, Chris set up a jointinitiative to help drive change in boththe public and private sectors.At the end of last year, a series of planning and deliveryprotocols were launched in Central London at an eventthat marked the success of this project. Designed to helpdevelopers and their advisers as well as local authorities andthe Highways Agency’s own planning and delivery teams, theprotocols provide a consistent approach to the submissionand review of planning proposals and the delivery of roadimprovement schemes.“These new protocols will be a great help to developersbecause they provide a common reference point andframework for both the public and private sectors,” said ChrisLewis. “As a result, this new approach should help to reducecosts and delays in the planning and delivery stages.”

The Highways Agency is the executive agency within theDepartment for Transport responsible for the strategic roadnetwork in England. Although the organisation plays a criticalrole within the planning process for major developments, itwas seen to be reluctant to engage with the private sector.With the support of British Land, Chris worked persistentlyto strengthen Prologis’ links with the Highways Agency toestablish a new way of working.In Spring 2010 the Penfold Review was published. Scrutinisingthe role that planning system plays in the Government’sgrowth agenda, the Review was critical of various GovernmentAgencies. The Review prompted the HA’s deputy chiefexecutive, Derek Turner to give the initiative fresh impetus anda Planning Protocol was published later that year. Quarterlymeetings between the HA and the private sector, which havebeen held at Prologis’ offices, have kept the initial protocol upto date and produced further protocols. The final documentswere launched last December under the strapline: “supportingdevelopment and facilitating growth.”Chris LewisFirst Vice President at Prologis UK“This is a tremendousachievement,” said AndrewGriffiths, Managing Directorof Prologis UK. “The successof Chris’ initiative has not onlybenefited our own developmentswith reductions in programme andlower costs, but it has also helpedthe industry in general.”

16prologis newsWalking the WalkIn line with its commitment to high standards of environmentalperformance across its property portfolio, Prologis is upgradingthe energy efficiency of its corporate headquarters at Pier 1 inSan Francisco - a historic waterfront building that has alreadybeen recognised for its sustainable redevelopment.The Pier 1 project showcases an innovative form of financingknown as PACE (Property Assessed Clean Energy). Under thePACE programme the City of San Francisco will fund energyefficiency and renewable energy projects and occupiers willrepay the City through an increase in business rates.The improvements will allow Prologis to significantly reduceannual energy costs and the PACE financing arrangementshave been designed to ensure that these savings will besufficient to cover the additional rates liability.The Pier 1 project includes a full lighting retrofit - in whichupgrades are planned for over 1,500 fixtures; there-commissioning of the heating and cooling system andthe installation of a 200kW rooftop solar array, which willinterconnect at a master electric meter to serve the wholebuilding. When complete, Prologis anticipates that this newinitiative will reduce grid energy consumption at Pier 1 by 32%.The Pier 1 upgrade follows a similar re-commissioning effort atthe company’s Denver operational headquarters in 2011.

ooftop solar array

18prologis newsRapid Delivery: New Trends in Build-to-SuitOne of the hottest topics in the industrialproperty sector seems to be the lack ofavailable Grade A space. But this is notthe only challenge confronting the marketand perhaps it is not the most serious.Rather, occupiers’ increasing preferencefor new bespoke facilities could becomemore problematic since these buildings areincreasingly needed more quickly thanbuild-to-suit developments can traditionallybe completed.The delay in building delivery is often caused by the planningprocess. Although the National Planning Policy Framework(NPPF) includes a presumption in favour of sustainabledevelopment, a wide range of complex issues have to beaddressed before a planning consent can be granted. As aresult, it can often take several years - as well as considerableexpertise and investment - to build the planning case for a site.To order your free copy of the Little Green Bookof Big Sheds of 2013 visit: www.prologis.co.uk/lgblittle green book

‘Ready-to-Go’?In the current market, where fast delivery build-to-suit isbecoming the preferred option, the planning status of a siteis therefore becoming a critical question. Recognising thissituation, developers are looking at different ways to promotetheir land bank and one of the most commonly used labels isthe term ‘Ready-to-Go’. This phrase can be defined in severaldifferent ways and can cover many stages of readiness.However, for Prologis ‘Ready-to-Go’ means just that; itmeans that the site has detailed planning permission andconstruction work can start on site as soon as a deal is signed.Consequently, customers will be able to move into their newfacilities within 10 months.P L A N NREADYLAND WITH DETAILED2 GOI N GP E R MI O NI S S1 2 3 4 5LAND WITH DETAILEDP L A N N I N GREADY2 GOP E R M I S S I O Nland ready to go1Prologis Park Sideway7Prologis Apex Park Daventry23456Prologis Park FradleyPrologis Park MidpointPrologis RFI DIRFT IIPrologis Park KetteringPrologis Park Coventry891011Prologis Park BoscombeRoad DunstableHartland Park FarnboroughPrologis Park HeathrowPrologis Park Littlebrook12 Prologis Park Basildon6 7 8 9 10 11 12Strategic Locations with Detailed Planning PermissionAnticipating the demand for new facilities that can be deliveredwithin a tight time frame, Prologis has been actively preparingits prime sites in the Midlands and the South East sites. At thestart of 2013, the company had detailed planning permission for5 million square feet. By the end of March, this figure had risento around 6 million square feet.In February, Prologis gained planning permission for a 260,500square foot distribution centre at the former Visteon RadiatorPlant site in Basildon. Then in March, Central BedfordshireCouncil granted planning permission for two buildingsof 310,000 square feet and 358,000 square feet atPrologis Park Boscombe Road Dunstable.As Andrew Griffiths, Managing Director of Prologis UK said,“We are investing in strategic locations with the aim of offeringour customers the best range of distribution opportunities inthe UK market.”design: tasselldesign.co.uk

prologis.co.ukOUR LATESTDEVEL MENTThe Prologis UK iPhone AppThe nifty Prologis App performs land and propertysearches at the touch of a button as well as accessto movies, news and more. Download yours today,available free from the App Store.An App for everything? There is now.Your local partner to global trade