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BIRMINGHAM, ENGLAND-The UK supermarket chain Sainsbury's has negotiated a build-to-suit deal with Denver-based ProLogis for what will be one of the more environmentally advanced distribution centers in the world. The 530,000-sf warehouse will be located within ProLogis Park Pineham in the Midlands, the UK's primary distribution hub.

The new facility will incorporate features and technologies designed to significantly reduce energy consumption and carbon emissions at the site including wall-mounted photovoltaic panels that generate electricity; solar walls that produce heat from sunlight; an on-site power plant that reuses the heat produced by air conditioning; an on-site recycling facility; energy efficient lighting systems; and air-tight construction that minimizes energy loss through the external fabric of the building. The project is helping both companies put a face on their respective environmental initiatives.

"We recognize that experience and expertise in this area will be a key success factor for industrial developers in the future, in order to meet more stringent regulatory requirements and the demands of customers concerned about corporate social responsibility," says Ken Hall, managing director of global development for ProLogis in Europe. Adds Roger Burley, Sainsbury's head of supply chain, "Sustainability is a core value at our company. We recognize that virtually every business decision we make has an impact on the environment, and that we can minimize that impact… ."