The leased facility at ProLogis Park Ostrava is strategically located close to the Ostrava city center – a premier administrative and manufacturing hub in the country. The site provides immediate access to major centers of commerce in the region through a highway network and Ostrava International Airport.

Geis Logistics will utilize the facility as a central warehouse for its operations in the Czech Republic and Slovakia and as a gateway to other Eastern European markets. Besides its prime location, the facility would also provide access to a talented pool of workforce that in turn could increase the company’s efficiency.

ProLogis owns and manages interests in over 2,500 distribution facilities, service offices and properties spanning 475 million square feet of space (including properties under development). As of June 30, it had 200.5 million square feet of directly owned industrial assets, 81.5% of which was located in North America, 14.2% in Europe and 4.3% in Asia.

In the Czech Republic, the company’s portfolio includes six distribution parks totaling 6.5 million square feet. ProLogis is currently monetizing its land bank to capitalize on its construction expertise for grade A sustainable facilities that uniquely satisfy customer requirements and attracts new businesses despite a softening economy.

The recent joint venture with Tenda will enhance the company's presence on the low-income segment. The long-term potential for growth in the local mortgage business is huge, and its massive inventory of land already acquired, as well as construction in progress, land bank and finished units is positive.

However, we are changing our current recommendation on Gafisa from Buy to Hold. The credit crunch in the U.S. banks is already affecting long-term credit lines for Brazilian banks, thus we foresee less availability of credit and higher rates in the following quarters.

Read the full analyst report on GFA