Panattoni to invest €1.2b in urban logistics across Europe

Panattoni Europe has announced investments worth €1.2 billion ($1.4 billion) in city logistics projects — facilities built within city limits dedicated to the so-called last-mile delivery.

Panattoni will make the investments over the next three years in a number of markets, including Poland, Germany, the United Kingdom and the Czech Republic.

Panattoni’s latest move marks a move toward smaller facilities located on the outskirts of cities — city logistics parks. The developer currently has four last-mile parks under development in Poland, representing a total investment of €65 million ($77 million). The most recent development — City Logistics Warsaw — comprises 280,000 square feet. The remaining city logistics parks in Poland — City Logistics Wrocław I, Łódź I and Warsaw Airport — remain under development with an occupancy rate currently in the range of 60 percent.

Robert Dobrzycki, CEO Europe of Panattoni, said that by the end of this year, his company will have delivered approximately 1.6 million square feet in city logistics parks in Poland and that further expansion will follow.

“We are planning to expand our portfolio to include in-city facilities in Germany, the United Kingdom and the Czech Republic in early 2019,” he said. “We will be allocating €400 million every year to these projects, totaling €1.2 billion over the next three years.”