San Francisco-based industrial real estate investment trust (REIT), Prologis Inc. (PLD - Free Report) 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 - Free Report) , Omega Healthcare Investors (OHI - Free Report) and Cousins Properties Inc. (CUZ - Free Report) . The first two carry a Zacks Rank #1 (Strong Buy), while the latter holds a Rank #2 (Buy).