Opportunity
The BMW Group was looking for a logistics real estate developer to build a spare parts warehouse in Germany. The company needed space for “slow-moving spare parts and accessories” for BMW and MINI vehicles. The BMW Group has been a customer of Prologis for many years and is now one of our largest industrial customers worldwide with projects in the United States, Great Britain, Slovakia and Germany. Many years of successful partnership led the automobile manufacturer to work with Prologis in developing its spare parts warehouse in Bavaria.
Challenge
The right location plays an important role in the development of a logistics center. A key factor in the choice of this location was the site’s proximity to the BMW production facilities in Munich. The Bavarian state capital is one of the most popular logistics locations in Germany. Finding a property of sufficient size that also met other existing requirements was a considerable challenge. In the end, the companies chose a property measuring around 248,000 square meters in the northeast part of the Munich metropolitan area.
Acquiring the site turned out to be a complex process because it consisted of two plots of land, one measuring approximately 243,000 square meters in the Bruckberg-Gündlkofen district and one measuring approximately 6,000 square meters in the city of Landshut. In addition, the properties were held by two different owners.
Solution
Prologis met with all of the parties involved, answered questions, addressed concerns and negotiated the sale with both parties successfully. With collaboration from the two municipalities involved, nothing stood in the way of the facility’s construction, which adhered to a tight schedule with completion set within one year. The ground-breaking ceremony for the facility was held in April 2015, and the logistics center, with a total of 144,000 square meters of floor space, was completed in March 2016, less than a year later.
The building is designed for long-term use and meets BMW’s exact requirements. The use of sustainable building methods ensures the facility will retain its value over the long term and allows efficient operation. The municipality, customer and owner all benefit from sustainable building models.
Lessons Learned
Developing a 144,000 square meter logistics facility at one of the most sought-after logistics locations in Germany required perseverance and tact to negotiate with the many parties involved. During the project for BMW, Prologis demonstrated that engaging two municipalities, two property owners and the customer in-depth dialogue paid off.