They don’t beat around the bush in the U.S. If they want a company, they’re pretty open about it and they let money speak.
Hillsborough County commissioners voted unanimously to award Amazon.com $225,000 in incentives, representing 20 percent of the total potential incentive package for the online retailer if it creates 375 jobs paying more than the state average.
County officials say if the company decides to locate in the south county, it could create 1,000 jobs with 375 of them paying an average of $47,581, the Tampa Tribune said.
On July 18, the commission will consider another break for Amazon, lowering its property taxes to $910,000 for seven years. That is a 50 percent reduction, the Tribune said.
Think they get that kind of reception in this part of the world?
Are the crowds any thinner in the shopping malls this year? Most would take that as a highly negative sign, but a more nuanced approach should take into account whether on-line retailing isn’t finally having an impact on how long you wait at the counter. Whatever the answer, a recent study by CBRE suggests that on-line retailing is definitely making itself felt in the product supply changing.
‘Online retailing is an established activity across much of Europe and expected to grow further over the next few years,” says Patrick Kurowski, Director of Industrial Department in CBRE. “It is already a significant driver of logistics market activity, and its future growth will introduce significant challenges and opportunities for the logistics networks needed to support it. This is not merely a case of increased demand for generic logistics space.”
There’s no question about it: technology is disruptive. And adapting to new shopping trends turns out to be just as important for trucking companies as it is for retailers, points out Kurowski. “It will also require the development of higher specification logistics buildings tailored specifically to the needs of online retailing, and capable of handling higher levels of mechanization and process complexity.”
Across Europe 40% of 16-65 year olds use the internet to shop and 47% browse for goods online. Both behaviors are significantly more prevalent in northern and western Europe (Sweden, Germany, UK and France) than they are in southern Europe and CEE.
Retailers expect the online proportion of their total sales to double from 5% to 10% over the next two years. While 70% currently regard themselves as primarily traditional “bricks and mortar” retailers most have begun the process of evolving into multichannel retailers, with 63% expecting to be fully-integrated multichannel retailers over the next two years.
Overall internet access in Europe has risen by nearly 400% since the year 2000, and credible estimates put the rate of future growth in online retailing in Europe at 12-15% per annum over the next five years.
The Goodman European Logistics Fund (GELF) has launched a €400m underwritten rights issue, while announcing an agreement on terms for a new €800m debt refinancing package.
Goodman Group CEO and Chairman of the GELF Investment Committee, Greg Goodman said, “These are significant capital management initiatives for the Fund which will further strengthen GELF’s balance sheet and ensure gearing is maintained below 40% in line with the Fund’s long term gearing target. The initiatives will also provide approximately €500 million of investment capability giving the Fund capacity to increase gross assets to €2 billion and improving financial flexibility.”
The refinancing includes €400m of secured facilities and another €400m unsecured facility, structured in a way that’s supposed to let GELF “transition” to debt capital markets over time in order to diversify its long-term funding sources.
As if daring anyone else to buy anything in Czech-and-now-Slovakia, CPI has revealed that it’s purchased the Lozorno logistics park outside Bratislava that’s occupied by the likes of Johnson Controls, Inteva Production (Arvin Meritor), Brose and IAC Group. It’s a set of five buildings with 115,000 sqm and they were purchased for €72.9m from AIRE GmbH & Co.
“The logistics sector is the youngest segment of CPI´s activities, developing in the last few years,” says CPI Group director Zdeněk Havelka. “Logistics seems to be the fastest recovering sector. The combination of high quality area with significant tenants is a very attractive long-term investment.”
James Chapman of Cushman & Wakefield, which advised CPI for this transaction, points out that it’s the largest investment deal since the financial crisis hit. (Anyone remember the last one?) “It is an example of the confidence returning to the country,” he says. “We are seeing strong growth in the number of international investors looking to invest in quality assets in the retail, office and industrial sectors.”
Well, that may be, but the local guys continue to brush those international investors aside like minor nuisances.
The deal between AMB Property Corporation and ProLogis is done. The company will trade under the name Prologis under which former ProLogis common equity holder will have about 60 percent of the combined stock of the two companies.
In the press release, the companies write:
The transaction will create synergies and be immediately accretive, with the full expected annual gross savings of approximately $80 million in G&A to be realized by the end of 2012. The company anticipates it will have an improved cost of capital with greater financial flexibility and that its expanded footprint will generate increased revenue opportunities by allowing it to better serve the needs of its customers.
Panattoni hires Mirbud
Panattoni has signed a €3m contract with Mirbud for the construction of logistics and office space development in Łódź. Mirbud director Jerzy Migros told Puls Biznesu the contract was a breakthrough for his company, as Goldbeck and Depenbrock have built most of the important investments in Poland until now. Work is expected to be completed in December 2011.
Doubts about Chinese A2 contract Chinese A2 road indebted
The Chinese consortium Covec, which is working on 50 km of the A2 expressway linking Łódź and Warsaw, has made assurances that it will pay its subcontractors’ invoices by the May. Covec is reported to owe Polish contractors PLN 30m. The company has promised is will complete its portion of the motorway on time, though experts believe the company doesn’t have a chance.
that spurred on by what he calls high demand, one of Romania’s richest businessmen, Ion Tiriac, will start in the next phase of construction on an office scheme on Piata Victoriei. The new 14-storey building will have 14 storeys and offer 20,000 sqm and is to be built at a cost of €20m on the new Boulevard Uranus.
The same paper reports
that PointPark Properties is planning to develop a logistic project in Craiova. The €60m project is for a logistics park near the city’s airport, with six buildings planned and 115,000 sqm of warehouse space.