ProLogis not exposed to empty rate change

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ProLogis has “no exposure to empty rates legislation at the present time”, Robert Watson, chief executive of ProLogis European Properties, has told the company’s annual meeting. “Demand in the UK has been driven by internet and conventional retailers. Concerns over an economic slowdown have led to a small reduction in activity in this market. PEPR remains 100 per cent let with no lease breaks or expiries until 2009,” he said. Germany has shown the strongest performance in Northern Europe, largely due to its central location, said Watson. “We have seen increased activity following the acquisition of Parkridge by ProLogis in 2007 and the integration of the Parkridge team into ProLogis.”

Watson said the forces were in place for across the board rental rate increases.

“These forces include constrained debt markets (requiring more equity by developers of new products), resulting in less development, a continuing increase in the cost of construction, and ceasing of cap rate contraction.”

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