Opportunity
The demand for logistics real estate in the Benelux is high. Eemhaven, located in the Port of Rotterdam, is a key market. Over the past few years, Prologis expanded its portfolio of seven distribution centers at Eemhaven into one park by acquiring and renovating three facilities on neighboring plots.
Challenge
Not all of the newly acquired real estate met the strict standards of our portfolio. Some of the acquired buildings were 15 to 20 years old, and while by no means near the end of their lifecycles they required improvements to bring standards up to the quality we offer our customers.
Solution
Our approach for the distribution centers at Eemhaven was twofold. First, each building was renovated, and we caught up with lapsed maintenance. Second, we aggregated the buildings into a single park concept.
Because the newly acquired buildings were still structurally sound, we opted for a large-scale upgrade, rather than complete redevelopment. This way, we could ensure that the real estate would be of the highest quality, both functionally and aesthetically, without the environmental impacts of demolition and construction. Among other things, we restored the dock equipment and shelters, refurbished facades, and replaced gates and fencing.
In addition to the renovation of individual buildings, we developed the Eemhaven real estate into a Prologis park, integrating 10 state-of-the-art distribution facilities into a property well suited for use as a single large distribution center. The total area, including offices and mezzanine floors, is now approximately 151,000 square meters. All buildings have the same look and feel inside and out, which creates a unified aesthetic for the park.
Lesson
The real estate at Eemhaven was empty when we acquired it, and the park is now at nearly full capacity. Because we are long-term owners of the distribution centers in our portfolio, we ensure the highest level of maintenance and upkeep.
The logistics park concept enables us to provide customers with substantial flexibility when it comes to expanding their logistics capabilities. In turn, this nurtures the continuing relationships that are so important to us.