spacesPrologis Europe Magazine

ISSUE 4

PROLOGISRainforest Relief

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3 INTRODUCTION

4 - 15 LOGISTICS RECOVERY CREATES DEMAND

16 - 21 DHL GO GREEN

22 - 25 A NEW SOURCE OF DEMAND

26 - 33 LONDON CALLING

34 - 41 COOL CARBON STRATEGIES

42 HUNGARY FOR SOCCER

About PrologisPrologis, Inc., is the global leader in industrial real estate, focused on globaland regional markets across the Americas, Europe and Asia. As of June 30, 2014, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 571 million square feet (53 million square meters) in 21 countries. The company leases modern distribution facilities to more than 4,700 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.

Published by Prologis Europe, September 2014Symphony Offices, Gustav Mahlerplein 17-21 1082 MS Amsterdam, the Netherlands Spaces was edited by Angela Jameson and designed by Nicola Ould

CONTENTS

Welcome to the first digital edition of Spaces, which can be read on an iPad or mobile device.This format is considered more environmentally friendly due to the reduction of paper and energy use, more modern and more interactive – three qualities on which Prologis prides itself.

These themes are very much in evidence in this issue. Our cover story on pages 34 to 41 is about the work we are doing with Cool Earth, a charity that helps protect the rainforest and indigenous tribes in Peru’s Amazon jungle. On pages 16 to 21 we feature another sustainability story, DHL’s important GoGreen initiative.

The ability to produce high-quality research is key for a company that wants to be a leader in its industry. On pages 4 to 15 we examine in detail what is happening in some of our major customer markets. What emerges is that demand is not just extraordinarily diverse but also doing quite well. And on pages 22 to 25, we look at how the growth of e-commerce is having an impact on the logistics industry.

Finally, our aims to be forward-thinking and innovative can be seen at London Gateway, London’s first new deep-water port for more than a century, which we feature on pages 26 to 33. I hope you enjoy your magazine.

Philip Dunne President, Prologis Europe

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PROLOGIS RESEARCH SHOWS THAT DEMAND FOR INDUSTRIAL SPACE IS COMING FROM MANY SECTORS

LOGISTICS RECOVERY CREATES DEMAND

After five years of uncertainty in the developed world’s main markets, the economy finally seems to be improving. Global leasing activity has grown with a marked improvement in the second half of 2013 and is expected to continue in 2014.

With more than 4,700 customers in 21 countries on four continents, Prologis is well-placed to discover how industries are performing in different territories.

According to Dirk Sosef, Director of Research and Strategy at Prologis Europe, the improvement in demand for logistics space has exceeded even Prologis’s expectations. Led by the US, global net absorption of space during 2013 reached roughly 3.25 million square metres (350 million square feet), the highest level since the beginning of the global financial crisis in 2008. While regional markets are moving at different rates, the momentum is generally picking up. So what lies behind this return to growth? The last five years have brought some major shifts in consumer behaviour and these could have long-lasting consequences.

Who would have thought that the US’s biggest companies would be almost solely online? Or that people would have smartphones with them all day and could shop, stay in touch or watch TV and movies anywhere and anytime they wanted to?

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Prologis recently examined what was happening tosome of its key customer markets, and one of the most striking findings was the sheer number of segments that were expanding.

In order to get to the bottom of these stronggrowth trends, Prologis’s research concentrated onthree key areas:

- Consumer-facing customers, the biggest customer group for the logistics real estate sector;

- Several sectors experiencing strong growth, notably housing, electronics, automotive and e-commerce; and

- Third party logistics providers (3PLs), which are expected to be a major source of growth in the future.

Consumer-facing industries were the most active of Prologis’s customers last year. These customers are typically food and beverage companies, electronics and apparel companies. They also include sporting goods, toy and fast-moving consumer product companies. Prologis’s research shows that 2013 these tenants expanded, accounting for a sizeable share of leasing volume.

General consumption growth

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Henk Folmer, Senior Vice President, Global Customer Solutions at Prologis Europe, says: “When our clients are talking to us, they are generally less risk averse. Their confidence is improving. We are also havingquite a few conversations where the customer has come to us to discuss their European plans.

One trend in customer facing industries, particularlyfood & beverage and apparel, is to prefer to locatein global markets, near major population centres.This is to satisfy the requirement from e-commerce fornext-day deliveries, as well as to enable shorter journeys to major urban markets.

Many of the goods in this sector serve basic dailyneeds. That means they provide stable business forPrologis or for the third party logistics providers thatlease space from Prologis. This growth is more closely tied to structural drivers, such as the reconfiguration of supply chains, than to the economic cycle, although it is clear that consumer-facing industries did suffer between 2009 and 2010 in the US and Europe, dipping again in Europe at the peak of the eurozone crisis.

“There are still some marked differences across theglobe, particularly between the US and Europe,” Sosef explains. “House construction picked up strongly in the US in 2013 and has been a factor in the logistics leasing market there, but is only now starting to take off in some European markets.”

“There is also quite a bit ofinterest in our speculativedevelopments. Utilisationrates are generally veryhigh – in parts of Europeabove 85% – so when a customer wins new business, that can immediately trigger a new requirement, if they need more than 10,000square metres of space.”

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Sectors experiencing strong growth

Structutal Expansion of ElectronicsELECTRONICS

The huge surge in demand for tablets and mobile phones, is expected to accelerate again in 2014. There has been a structural expansion of electronics sales as consumers around the world have rushed to buy the latest tablets and laptops. The ecosystem of electronics retailers, distributors and suppliers is now a huge player within the global logistics industry.

Looking forward, the growth in consumer spendingon electronics is expected to continue. Shoppers’ first purchase drives growth, but as we all become used to technology in our daily lives, upgrades are also now a significant factor.

HOUSING

In the US, house construction has picked up and that has led to increased leasing activity from companies that are active in the building products and construction sectors, as well as furniture and appliance companies.

While Europe is largely lagging behind the US in terms of house construction, there are some signs of improvements in Europe and the UK’s housing markets. Housing starts are not keeping pace with population growth and demographic changes, which means that house construction should begin to pick up again soon.

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SHOPPERS’ FIRST PURCHASE DRIVES GROWTH, BUT AS WE ALL BECOME USED TO THIS TECHNOLOGY IN OUR DAILY LIVES, UPGRADES ARE ALSO NOW A SIGNIFICANT FACTOR.

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THE NUMBER OF CARS MADE IN THE UK HAS BEEN INCREASING FOR THE LAST 27 MONTHS. IN 2013 THE UK MADE 1.5 MILLION CARS, ALTHOUGH THAT IS STILL LOWER THAN THE PEAK OF UK PRODUCTION IN THE 1970s.

Sectors experiencing strong growth

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CAR MANUFACTURING

The recovery of car sales is also a clear driver in the industrial property sector. 2013 featured a healthy combination of new requirements and expansion of existing leases, according to Prologis’s research.

The uplift has been strongest in the US and Mexico,but it is also occurring in Europe, where Germany and the UK are leading the way.

IN 2013, GERMANY PRODUCED 5.4 MILLION CARS, THE UK 1.5 MILLION, FRANCE 1.4 MILLION AND SPAIN 1.7 MILLION. THE CZECH REPUBLIC IS THE NEXT BIGGEST EUROPEAN CAR MAKER WITH 1.1 MILLION CARS.

Sectors experiencing strong growth

“ What we are seeing right now is that e-commerce players are becoming more active and require more space.”

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E-COMMERCE

The changing spending habits of consumers have created a tremendous increase in online shopping. And they have also had an impact on the leasing market.

For Prologis’s customers, a fast-growing part of their business is now conducted online and that is re-shaping their supply chains.

The most visible e-commerce related growth has come from dedicated online and mass merchant retailers, like Amazon and Ebay, but demand for e-commerce sales has been pronounced among clothing retailers, electronics brands and the sporting goods and toys sectors.

Sosef says that in Europe, e-commerce is a new secular driver of demand: “This is positive for Europe. It creates a new demand for the sector. What we are seeing right now is that e-commerce players are becoming more active and require more space.”

Retailers and e-commerce specialists are now choosing to locate closer to the edges of big cities. For instance, Amazon is opening mini-distribution centres – just 5,000 to 10,000 square metres – on the outskirts of London so that it can fill orders rapidly.

Auto Shipments, Global Sales

E-commerce Share of Retail

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3PL Industry Revenue, GlobalTHIRD PARTY LOGISTICS PROVIDERS (3PLs) SET TO BENEFIT

3PLs are Prologis’s largest customer group and should benefit from the growth of all these major sectors. Demand within the consumer-facing segments, food and beverage, apparel and electronics industries has been particularly significant for leasing to 3PLs. Outsourcing remains strong in the corporate world and is expected to continue to do so.

“Many 3PLs have had over five difficultyears,” says Sosef. “Now they are through that and we are starting to see them come back strongly, first in the US but increasingly in Europe too.”

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LOW VACANCY RATES COULD PUSH RENTS HIGHER

Generally, rents for industrial space in Europe dropped significantly during the crisis – by about 20%. Since the deep point of 2010, rents have recovered by about 7.5%. “Industrial rents are still lagging behind the recovery that we’ve seen in retail and office rents,” Sosef explains.

European logistics space now has an average occupancy rate of 91.5%, which is higher than the 2007 peak. “We are also seeing that development starts have not materially increased,” Sosef adds. “In addition, 90% of new logistics projects are currently build-to-suit, so there is not a lot of available space.”

Of course, this picture describes Europe’s strongestmarkets, Germany and the UK. In Southern Europe and in parts of Central Europe, vacancy rates are still quite high but recovery is accelerating. In Southern Europe the average occupancy rate is below 91%.

Low vacancy rates are beginning to create shortagesacross more markets in Europe and across all types of industrial property in a number of European markets. If the trend continues, that should lead to further rental growth.

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THE WORLD’S LEADING MAIL AND LOGISTICS SERVICES GROUP HAS MADE ENVIRONMENTAL COMMITMENTS THAT ARE SETTING THE BAR FOR THE INDUSTRY

DHLGO GREEN

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Seven years ago, Deutsche Post DHL (DPDHL) became the first logistics organisation to set itself a publicly-declared target of improving its carbon efficiency by 30% by 2020, over a 2007 baseline. The goal also includes emissions from its sub-contracted transport providers.

This commitment is integrated in the company’sCorporate Strategy: 2020. “Combatting climate change by becoming more carbon-efficient and delivering sustainable value to society and communities will require more from all of us in the months and years to come,” said Frank Appel, chief executive of DPDHL. “At Deutsche Post DHL, we take this responsibility seriously and remain committed to our goal of making a positive impact on the world around us.”

With a global presence in more than 220 countriesand territories, the company has a significant realestate footprint. Operating around 2,400 logistics centres, warehouses and terminals across the DHL Supply Chain business division, its property portfolio spans more than 10,000 locations.

The electricity bill for these buildings is huge, according to Huw Phillips, Programme Director for GoGreen at DPDHL Corporate Real Estate. “We needed to find imaginative ways to reduce the bill,” Phillips explains.

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“By looking at what generated the biggestbill, it soon became clear that our silver bullet wasintelligent lighting,” he adds.

“Within an ambient building, lighting can make up about 70% of a warehouse’s electricity bill.”

To find the best solution, DPDHL conducted a trans-European tender, inviting 50 suppliers to take part. From the responses, 10 lighting solutions were installed in a warehouse and analysed over a three month period.

LEDs came out as the best low-energy solution for thelong term and the company chose a combination of intelligent T5 fluorescent and LED lighting for wide-scale implementation.

“It’s important that we create viable solutions thatdeliver commercial benefit during the lease period ofa building. Many of our warehouses are short-termleases, where LED doesn’t always make commercialsense,” explains Phillips.

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GLOBAL EMISSIONS 49 billion tonnes in 2010 up from 38 billion in 1990UN Intergovernmental Panel on Climate Change (IPCC)

Since 1900, the global average surface temperature has increased by about 0.8 °C (1.4 °F)The Royal Society

EU goal: to reduce energy consumption by 20% by 2020

90 companies produced 63% of greenhouse gas emissions between 1751 to 2010 US Department of Energy

US emissions fell 3.4% in 2012 to 6.5 billion tonnes. EU emissions fell 1.3% in 2012 to 4.5 billion tonnes European Environment Agency

49 BILLION TONNES

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1CHP is a type of mini-power station installed on site which generates electricity and uses the heat that would otherwise be wasted from the process to feed the heating and cooling systems.

Movement and daylight sensors are also key components in delivering energy savings. The optimum lighting solution has sensors on everylight fitting, so that if an aisle in a warehouse is not visited for a few minutes, the light automatically dims and eventually switches off.

Investing in efficient lighting systems has already helped DPDHL’s real estate teams deliver tangible results. In Europe alone, more than 15,000 new light fittings have been installed, covering 1.3 million square metres.

DPDHL has achieved up to a 60% reduction in lighting electricity costs in some locations, and in one country a 10% national reduction to the carbon footprint from one location.

Combined Heat and Power (CHP)1, has also beenpiloted in Germany and the USA. Energy savings of up to 30% have been achieved and the technology is currently being evaluated for further roll-out.

AT ONE PROLOGIS SITE, INSTALLING IMPROVED LIGHTING CONTRIBUTED TO A 10% REDUCTION TO DIVISION’S NATIONAL CARBON FOOTPRINT

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“Warehouses needn’t be energy-guzzling giants. A commercially viable plan will reduce cost and lower your carbon footprint,” Phillips adds.

Many customers are reassured that DPDHLis reducing its environmental impact. “Warehouses needn’t be energy-guzzling giants. A commercially viable plan will reduce cost and lower your carbon footprint,” Phillips adds.

DPDHL is keen to share its experiences with developer landlords, including Prologis. “If the industry is serious about meeting the growing demand from customers for energy efficiency, we need to work together to improve the base buildingspecifications of the facilities we rent,” says Phillips.

DPDHL aims to lead the industry, both in profits and sustainability. And that‘s why the yellow and red giant is committed to “GoGreen”.

A NEW SOURCE OF DEMAND PROLOGIS RESEARCH REVEALS THE EXTRAORDINARY GROWTH OF E-COMMERCE

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E-commerce sales are approaching $1 trillion a year and this shift is changing the way the retail and logistics industries operate. Last month Prologis published a white paper, “Inside the Global Supply Chain: E-commerce and a New Demand Model for Logistics Real Estate”, which analyses how e-commerce is changing retailers’ requirements for logistics real estate and how distribution centres are adapting.

It reveals that e-commerce accounts for a sizeable and growing share of demand - more than 10% of all new leasing around the world, up from just 5% less than 3 years ago. And we are still early in the cycle. For perspective it is helpful to look at the life span of how companies grow their e-commerce fulfilment.

If we consider the initial stages, retailers often use a portion of their existing distribution facilities for e-commerce fulfilment. With some success of the concept, you need more space to grow. Retailers may seek space in multi-tenant facilities or outsource the activity. Third-party logistics providers can bundle requirements from multiple retailers, scaling their knowledge, investment and equipment. From there, with further success, more space is needed and more in to dedicated facility. Eventually, ongoing growth creates a need for multiple buildings.

We see customers from across this life span, which creates a range of demand profiles.

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Evolution of E-Commerce Logistics Requirements

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Distribution of Online Sales by Retailer Size

The second key point that the report reveals relates to the amount of logistics space e-commerce retailers require. A traditional retailer, who makes about $1 billion of sales in their store, requires about 2.5 million square feet of retail on average and 300,000 square feet of logistics space to serve those stores. In e-commerce, the same business requires about 1million square feet of fulfilment space, three times the amount that a traditional retailer requires. This is necessary for the greater product variety, higher inventory levels and individual outbound shipping.

The third key point is about obsolescence. The ways in which our e-commerce customers use logistics facilities are unique. For the most part, e-commerce affects how they use their space rather than requiring them to take newly-configured facilities. However, there are a few features that attract e-commerce customers. The first is a superior location, because proximity to customer bases and labour pools are important. The second is access for employees. In the US and Europe, that means more land for parking; in Asia, it is proximity to mass transit. And lastly, is higher ceiling heights - some larger customers need more room for mezzanine flooring.

“Online fulfilment is in its infancy and we anticipate e-commerce will create significant new demand for logistics real estate well into the future,” says Chris Caton, vice president and head, Prologis Research.

“Our analysis indicates fulfilment models emphasize proximity to major population centres, allowing for faster delivery times, higher services levels, and greater flexibility in the supply chain.”

E-COMMERCE ACCOUNTS FOR A SIZEABLE AND GROWING SHARE OF DEMAND - MORE THAN 10% OF ALL NEW LEASING AROUND THE WORLD, UP FROM JUST 5% LESS THAN 3 YEARS AGO. AND WE ARE STILL EARLY IN THE CYCLE.

LONDON’S FIRST NEW DEEP SEA WATER PORT FOR MORE THAN A CENTURY IS EXPECTED TO SHAKE UP LOGISTICS NETWORKS AROUND THE CAPITAL

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London is once again a trading port.The British Isles’ capital first attractedsettlers because of its access to the sea,but its sea-going trade dried up in the1960s and 1970s, as ships outgrew itsVictorian docks. At long last, it has a container port to put it back on the map and the new facility could revolutionise the UK’s logistics networks. For instance, London is now connected to New York by sea for the first time in many years.

Opened towards the end of last year, London Gateway has already welcomed its first giant 58,000-tonne container ships – the first vessels in two generations to dock at a major deep-water port in London. The new port was completed thanks to Abu Dhabi-based DP World, which took on the development project when it bought P&O Ports in 2005.

So far DP World has spent £1.5 billion on the port, which has already created 10,000 construction jobs, and will create 2,000 port jobs by the time it is finished.

Essential to the port’s success will be a 9 millionsquare metre logistics park next door. Prologis was not going to miss the opportunity to be a part of that park, according to Paul Weston, Senior Vice President Development Prologis UK.

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LONDON GATEWAY RENTS ARE LIKELY TO BE 25 TO 50P PER SQUARE FOOT HIGHER THAN OTHER SOUTH EAST SPACE BECAUSE THE LOGISTICS PARK WILL OFFER TENANTS COST-SAVING CONVENIENCE TO THE PORT.

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In April 2014, DP World and Prologis confirmed thatthey had created a 50/50 joint venture to develop a316,000 square foot distribution centre at London Gateway Logistics Park.

Prologis will build the new distribution centrespeculatively and ground works are now under way, with the expectation that it will be finished next spring.“We had talked to DP World over the years about this, but in the last 18 months, our conversations gained momentum,” Weston adds.

“The opportunity was obvious, the question was not whether we wanted to be there, but did we want to be in at the beginning and leading the charge.”

“It’s the first new port built for 100 years, with exceptional rail and road connectivity. That is suddenly a very compelling offer for customers – and all on the edge of the UK’s biggest centre of population.”

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The new facility is designed to offer flexible distribution space. The single-sided, 15 metre high unit has a 55 metre yard and space for expansion.

It will showcase some of Prologis’s most up-to-date innovations, including the highest BREEAM specifications. The building will have 150% more dock doors than a traditional single-sided distribution centre, and the 55 metre yard gives occupiers plenty of room to use scissor lifts for double-deck trailers.

Planning permission should be achieved relativelyquickly, as a local development order is in place which fast-tracks development at the port and on the neighbouring distribution park.

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As far as future development projects are concerned, Prologis is keen to do more at London Gateway, but no further agreements are pending. London Gateway rents are likely to be £0.25 - £0.50 per square foot higher than in other south east locations because the logistics park will offer tenants cost-saving convenience to the port. “There are lots of advantages that will add value,” Weston says.

London Gateway may not yet be fully open, but it has already been attracting shipping lines. It has pickedup north-south shipping lines from London to South Africa and has announced a feeder service from London Gateway to Dublin. The announcement of an Asian line, operating directly to China, is expected soon and this is a big win in shipping terms.

“ We were at an industry event when news of the deal came out and we had various enquiries there and then, so we are hopeful that it will be leased quickly.” Weston says.

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Felixstowe will be the port’s biggest competitor, but traffic is expected to be attracted from Rotterdam as well.

During the recent bad winter weather, London Gateway was the only UK port that remained open thanks to its favourable location and the latest technology that it features. “Every developer in the UK is desperate to get in there and we have shown that with our capital, we are fully committed to this 50/50 JV,” says Weston. Indeed, it is not just developers, but end customers, that are keen on London Gateway. Marks & Spencer has agreed to open its third national distribution centre there, which will be about 1million square feet.

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Prologis’s project at London Gateway is just one of anumber of buildings that the company is speculativelydeveloping in the UK.

In the south east it has a 310,000 square feet shed that will be completed soon in Dunstable and a 1 million square feet distribution centre at Heathrow. Further speculative warehouses include a 225,000 square feet building in Coventry and a 142,000 square feet facility in Northampton.

But with UK container traffic still below pre-recession levels, Prologis’s decision to go into a 50/50 joint venture with DP World is a huge boost to the Middle East developer. Both partners will be hoping that calmer economic waters lie ahead.

“There was a massiveamount of vacant space when the music stopped in2008, but the industryhas worked through it intime,” Weston explains. “Prologis has adjusted its landbank in the last four years. Now we believe that demand is recovering steadily and that a measured speculative programme is the right thing to do.”

COOL CARBON STRATEGIES PROLOGIS HAS BEEN WORKING WITH COOL EARTH TO PROTECT THE RAINFOREST AND INDIGENOUS TRIBES IN PERU’S AMAZON JUNGLE

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What connects a construction training centre inDartford, Kent, with the Ashaninka region in Peru’sEné valley? The answer is carbon. The unavoidablecarbon trapped in developing SusCon at Dartford was measured and a proportionate amount of money was paid to the Cool Earth charity, which is working to protect the lifestyle of indigenous tribes in the Ashaninka region.

Simon Cox, Sustainability Officer atPrologis UK, explains: “We know that embodied carbon in buildings is very significant and we have worked hard to reduce it in ours. But we wanted to do more to offset the environmental impact of our business and have been measuring and mitigating our unavoidable carbon emissions since 2007.”

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Not only is the £6.9 million SusCon building setting standards for sustainable green buildings of the future, it is also helping to reduce deforestation in South America. This causes about 18% of global greenhouse gas (GHG) emissions, so reducing deforestation in the world’s rainforests. As far as Prologis is concerned, contributing to a carbon mitigation scheme like Cool Earth is the right thing to do.

Cox began talking to Cool Earth several years ago. At the time, Cool Earth was a small but growing charity with some big plans.

Unlike carbon-offset schemes, the charity acceptsdonations, rather than selling externally-verified carbon credits. “Many companies buy verified credits (usually referred to as REDD credits), but we found the Cool Earth approach far more interesting due to their focus on social benefits,” Cox says.

The charity is now working alongside 65 rainforestvillages throughout the world. These villages areprotecting more than 350,000 acres of forest that lie directly in the path of chainsaws and bulldozers.

In Peru, where Prologis’s donations are spent, about half of the country’s GHG emissions are due to deforestation. To work out how much should be paid to the charity, Prologis actually pays 110% of its measured embodied-carbon emissions, then multiplies the figure by five to help deal with the risk that logging activity is not reduced in its entirety, but is instead displaced to unprotected areas.

“Because we contribute to a carbon mitigation scheme, customers can move into one of our buildings and make an immediate saving in their carbon footprint,” Cox explains.

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THIS IS NO EASY TASK. FOR COOL EARTH, IT INVOLVES BUILDING CLOSE TIES IN COMMUNITIES AND WORKING FOR THE LONG-TERM.

Since Prologis began supporting Cool Earth in 2010, the business has helped to protect 1,700 acres in Peru. Cool Earth’s strategy in the region is to create a virtual barrier to halt the spread of deforestation. By establishing a perimeter in a region, the charity can help villagers to protect all the land behind it from invading loggers. “This is where Cool Earth is quite unusual,” Cox explains. “They put the ownership of the land, which has never been established, into the legal ownership of indigenous people. The villagers pledge that they will not allow loggers onto their land.

The communities can continue with theirway of life, and many of them will findemployment as part of the protection. Localpeople are rangers who monitor trees and make sure the legal tenure is in place.”

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Cool Earth’s work in the area also involves education,constructing local schools, and in one village whereit was difficult for people to find protein to eat,constructing a fish farm.

When loggers destroy areas of the rainforest, indigenous people lose their way of life and have to migrate to Peru’s cities for work. Cool Earth are working to protect communities that are threatened, rather than just acres of rainforest. “We like the fact that there was a real social approach, that was different to other charities. That’s what stood out to us, that it was about saving people,” Cox says.

Cox believes the Cool Earth commitment made by Prologis convinces customers that the company cares about its environmental impact, and can help reduce the tenants’ carbon footprint.

“Some companies are very interested in sustainability,others less so,” he says. “The thing that people like about this is that building a warehouse has a big environmental impact and we don’t ignore that.” Some of Prologis’s customers have gone on to seekcertification from other carbon-offset companies, andsome, including Marks & Spencer, have also become supporters of Cool Earth. “When we meet a new customer, they want to understand how we treat sustainability and how wemake up for the environmental impact of our business.They like what we are doing in terms of mitigatingcarbon impact.”

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Prologis’s partnership with Cool Earth is a voluntary commitment and goes beyond what government regulations require of companies. Unfortunately, stricter building regulations that curb the emissions of buildings in the UK could make it difficult to continue mitigating carbon with donations to overseas projects.

If strict new building regulations in the UK lead to the creation of a local carbon offset market whereby developers would make payments to local authorities to offset the unavoidable carbon that would be embedded in their new developments, it could pull funding away from groups like Cool Earth. This would be devastating for the indigenous tribes in Peru, which depend on help from Europe so that they can continue to protect the rainforests and carbon stores that serve us all.

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Sadly, some of Europe’s biggest teams were not represented this time, including Poland and Hungary. But Hungarians need not despair: Prologis has come up with its own tournament to keep its local customers happy and fit.

The Prologis Budapest Football Games will be organised in September as an annual event. Customers operating in Prologis parks in Hungary can nominate one or two teams of employees. The five-a-side tournament will take place when World Cup memories are still strong and all the matches will be held on a single day.

Prologis Park Budapest has its own five-a-side football field in the park.

The park provides somewhere for customers’ employees to spend their leisure time, as well as to help them understand and see sustainable practices. It includes a small lake, a barbecue pit for customers and a community garden, where customers can plant trees and grow vegetables. Irrigation for the grounds and garden comes from a nearby sustainable wastewater treatment plant. It is designed to be both useful and educational at the same time.

Teams should get in touch with Zsuzsanna Hunyadi, leasing coordinator Hungary & Romania, as soon as possible, with an indication of how many teams they would like to enter in the competition.

CONTACT INFORMATION T: +36 1 577 7707 | M: +36 70 933 9207E: zhunyadi@prologis.com

WITH MEMORIES OF BRAZIL 2014 STILL FRESH, PROLOGIS HUNGARY IS RUNNING ITS FIRST SOCCER TOURNAMENT

HUNGARY FOR SOCCER

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