Logistics

Prologis is investing 17 million in a new urban hub in the heart of Milan

The US giant is expanding into Italia’s largest food wholesale market. The signing of the deal to acquire the British firm Segro is expected

by Rossella Savojardo

21 September 2026

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Lo sviluppo del DC5 nel centro del capoluogo lombardo

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

Seventeen million euros for around 12,000 square metres in the heart of Milan. Pending the official signing of the acquisition of the British firm Segro, Prologis is pressing ahead with its expansion strategy and, in Italia, is strengthening its presence in the Lombard capital with Milano DC5, a new urban logistics hub within the Mercato Alimentare, managed by Sogemi (the company in which the City of Milan holds a stake, which manages the Mercato Alimentare and the city’s neighbourhood markets).

Last-mile logistics objective

The project, awarded following a public tender and being developed on land granted under a surface rights lease by Sogemi, represents one of the few opportunities currently available to develop new logistics spaces in central locations within the Lombard capital. Work has already begun and completion is scheduled for the fourth quarter of 2026.

The property will be a multi-tenant facility, comprising six units, with a cross-dock layout and temperature-controlled conditions, intended primarily for the distribution of fresh food products, but also for last-mile operations and small and medium-sized enterprises. The location is strategic: approximately six kilometres from the city centre, two from Linate and one from the ring road. “This transaction is in line with the strategy we have implemented in recent years, particularly in the Milan market, but also within the urban logistics sector,” explains Sandro Innocenti, Senior Vice President and Regional Head for Southern Europe at Prologis.

The DC5 follows on from Milano DC3, which was developed by the company in the same area and has already seen a positive response in terms of lettings. The new facility also aims to capitalise on synergies with the agri-food sector: wholesalers, distributors and suppliers based at the Ortomercato can find in this property a logistics solution that is directly integrated with their target market.

However, this central location comes at a cost. “It is a much more capital-intensive investment than other projects outside urban centres,” adds Innocenti. This higher capital intensity is justified by the quality of the location and the scarcity of available logistics space in the city. The counter-cyclical nature of the food sector also helps to sustain demand.

Other investments under consideration

The strategy focuses on brownfield sites. The Milan project epitomises one of Prologis’s key priorities: the regeneration of already urbanised areas. “The group remains committed to always considering the availability of brownfield sites as its first option,” emphasises the manager. This is an approach the group also intends to follow outside Milan. Rome represents one of the most interesting markets: in the area of the Guidonia Agri-Food Centre, Prologis is developing what will become the third-largest market in Europe, covering an area of approximately 100,000 square metres. For smaller towns, the scale may be reduced, but the principle remains the same: identifying derelict or already developed sites in locations suitable for urban distribution. The other key growth driver remains expansion: the US property giant is targeting new developments worth around 46 million in 2026, acquisitions worth a further 25 million, as well as disposals worth 30 million.

The group already has a presence in Naples, where it intends to expand its operations: “The capital of Campania is one of the cities we are examining with the greatest interest. Next, we will look at Bari as our next market, because we cannot overlook a catchment area such as the south, which is very important and has significant spending power,” Innocenti explains further. An area which, according to the manager, offers ample scope for growth, but which is hampered by the persistent lack of a distribution network serving businesses and consumers.

Alongside traditional logistics, operators such as Prologis are also turning their attention to new market segments. In Italia, one of the most interesting areas of growth today is data centres – with the areas around Milan and Rome among the most popular – driven by the growing demand for infrastructure linked to the development of data and artificial intelligence.

Industry figures

Prologis’ DC5 project is part of a logistics market that saw strong growth in the first half of 2026. According to JLL Italia, investment in the logistics and industrial sector reached €1.25 billion between January and June, 50 per cent higher than in the same period of 2025 and accounting for 16 per cent of total property investment. The second quarter contributed around 800 million, bolstered in part by the completion of two major portfolio transactions, which accounted for over 60 per cent of quarterly volumes. On the lettings front, take-up reached around 1.6 million square metres, representing a 72 per cent year-on-year increase. Geographically, the Milan metropolitan area accounted for around 60 per cent of national demand.

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