Monday, March 26, 2007

Sainsbury Signs Build-to-Suit for 530,000 SF Midlands Warehouse

Commercial Property News - February 8, 2007

Establishing an even larger foothold in the U.K. industrial market, Denver-based ProLogis has signed on to build a 530,000 square-foot warehouse for Sainsbury's, a prominent supermarket chain that will lease the building from the industrial property developer. The distribution center will be the first structure at ProLogis Park Pineham, which will cost ProLogis an estimated $150 million to $180 million to develop at the property's full buildout of approximately 1.6 million square feet.

Sainsbury's signed a multi-year triple-net lease with ProLogis, and will use the facility as a distribution center for its stores across central England. Located off the M1 motorway, which offers a coveted connection to the country's national motorway network, ProLogis Park Pineham occupies a 112-acre site in the Midlands. "The Midlands is the number one distribution area throughout the U.K. and ProLogis has a very strong presence there," a ProLogis spokesperson told CPN. "The contract is the first lease at the park and is highly indicative of the market."

The company expects to wrap up construction of Sainsbury's new building during the second half of this year. Sphere: Related Content

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