Prologis to Develop 35,200 Square Meter Logistics Facility for DHL in Ludwigsau

DUSSELDORF/BONN (23 June 2017) – Prologis, Inc., the global leader in logistics real estate, today announced that it is developing a 35,200 square meter logistics facility for DHL in Ludwigsau, near Bad Hersfeld.

DHL and Prologis have entered into a long-term lease contract for use of the new facility. As a leading logistics partner in the German e-commerce and mail order sectors, DHL pools services such as warehousing, order picking, packaging, shipping, delivery straight to the door or any other agreed location and returns management for a number of online retailers. Since 2007, DHL Package has been operating the central transshipment center and warehouse in Ludwigsau for 2-Person-Handling, its premium heavy and bulky goods transportation and delivery service. Construction started in late April 2017 and the facility will be handed over in stages as of November 2017.

The new facility has warehouse and transshipment areas. The transshipment area alone is 10,000 square meters in size. DHL needs to increase its capacity in Ludwigsau in light of the steady growth of e-commerce. Goods dispatched from Ludwigsau can be delivered to end customers across Germany within 24 hours. DHL also extended its current lease with Prologis for the existing 37,500 square meters in Ludwigsau.

When the new facility becomes operational, the total area will reach almost 73,000 square meters on a property over 21 hectares in size. “The new facility is an investment in the rapidly growing 2-Person-Handling business. Ludwigsau is a central transport and logistics hub in Germany, which makes it ideal for our expansion plans,” explained Dr. Benjamin Rasch, senior vice president at DHL and managing director of DHL Home Delivery GmbH, which operates DHLs 2-Person-Handling business.

“We are pleased to have been awarded the contract for this high-quality space and to continue to nurture our long-standing partnership with DHL. This is currently the only property of its size available in the region,” said Philipp Feige, director, market officer, Prologis Northern Germany..

Prologis is aiming for a gold certificate from the German Sustainable Building Council (DGNB) and is fitting the entire facility with LED lights and high-quality insulation to minimize energy consumption. Once complete, Prologis will take over the property management of the entire facility.

Prologis has purchased the 12 hectares of land on which the facility is being built from Hessische Landgesellschaft (HLG). Elmar Franke from HLG explained: “After our positive experience with Prologis in 2007, the contractual negotiations were once again professional and to the point, and they further expand our relationship with the company.” The investment is of great significance to the shareholders of the inter-municipal industrial area UnternehmensPark Bad Hersfeld-Ludwigsau.

“We are pleased to further strengthen our economy with the new Prologis facility,” said Dr. Michael H. Koch, chief administrative officer of the District of Hersfeld-Rotenburg. Bernd Rudolph, managing director of the Society for Economic Development in the district, continued: “The expansion of the facility means room for new jobs for our region in particular.”

Ludwigsau is close to Bad Hersfeld,in the heart of Germany and Europe. With good access to routes such as the A4 and A7 autobahns, the region has proven to be an optimal logistics location for companies that need a distribution center with excellent connections.