Michelin to Lease New Facility

International distribution facilities provider ProLogis has agreed to acquire a 32-hectare piece of land from Michelin. On this 32-hectare site in Poitiers, France, ProLogis will build a 32,000 square metre (344,000 square foot) facility for Michelin, which will then lease the property as a distribution centre under a long-term agreement. Michelin’s facility will be part of a new 139,000 square metre industrial park owned by ProLogis and said to be valued at approximately US$132 million (£67 million).

The leasing of the premises at Poitiers marks a change for Michelin, being the first warehouse they have leased in France. The company has traditionally owned all of their French facilities.

The distribution centre is scheduled to be completed during the second half of 2007.