ProLogis paid £298m (€453m) in cash and shares to acquire Parkridge's industrial development business throughout Western and Central Europe. ProLogis claims to be the world's largest owner, manager and developer of distribution facilities. By cutting out a rival such as Parkridge, ProLogis could make it more difficult for supply chain managers to get competitive rates in Europe. ProLogis' chief executive officer, Jeffrey Schwartz, said the transaction further extends the company's position as the largest provider of distribution facilities in Europe. "It enables us to expand our presence in existing and target markets through acquisition of one of our top competitors in European industrial development," he said. "Additionally, it strengthens our land bank in Central Europe and the UK, while enhancing our team with some of the industry's top real estate professionals." With the purchase ProLogis acquires about 800 acres in the UK it says can support 14 to 15 million square feet of new development. It also acquires Astral, Parkridge's UK logistics development business. Astral currently has 10 industrial projects under construction, totaling about 5.2m sq-ft. The company also acquired ongoing operations in Western Europe focused on new industrial development in Belgium, France, Germany, Italy, Luxembourg, the Netherlands and Spain. Parkridge's 50 per cent interest in a Central European logistics development joint venture was also part of the purchase. In a separate transaction, ProLogis also bought out Parkridge's joint venture partner for €345m, including €246m of debt. The venture controls about 5.2m sq-ft of industrial space and has an additional 4.5 million square feet under construction. The venture also owns 5.6m sq-ft of existing warehouse facilities. As part of the transaction, ProLogis has also acquired a 25 percent interest in Parkridge's non-industrial real estate operations. The operations include two mixed-use development projects in the UK, a retail warehousing development business focused on the UK, France and Spain, and a retail development businesses in Central Europe. According to Transport Intelligence magazine ProLogis has been one of the drivers of consolidation in the logistics and warehouse sectors. In 2005 the company acquired US Catellus Development Corp. In 2006 Macquarie Goodman Group acquired Eurinpro, a European provider of distribution facilities. "At present the market remains strong, with rents rising and an on-going demand for modern distribution facilities," the journal stated. "There is little sign that this will change soon."