P&G finds development company to complete W. Branch expansion
News · August 30, 2006

Procter & Gamble Hair Care, a division of Procter & Gamble (P&G), has chosen Indianapolis-based Duke Realty Corporation to develop a 515,309 square-foot warehouse and distribution facility in West Branch.

P&G is moving dirt for a two-fold expansion at its West Branch location — first, a 270,000 square-foot expansion to its existing distribution center and a second, 515,309 square-foot building, to be constructed directly to the west of the existing facility. Duke will own the second building and lease it to P&G.

Procter & Gamble had been waiting for a third party to build the 515,000 square-foot building before officially announcing it as part of the company’s West Branch expansion. Duke’s involvement paves the way for the full project to go ahead.

“We are delighted to develop this project for P&G in the Iowa City area,” said Chris Seger, executive vice president of Duke’s national development group, in a statement released by the company on Monday.

The City of West Branch has welcomed the expansion. On Aug. 21, the West Branch City Council entered into a RISE (Revitalize Iowa’s Sound Economy) agreement with P&G and the Iowa Department of Transportation, sharing the cost of utility infrastructure and an east-west road to be built south of the distribution facilities. The total cost of the upgrades are estimated at $1.124 million, with the city paying $273,000.

Even after the current expansion is finished, P&G may still invest more in West Branch’s industrial park. Duke Realty said the new road and infrastructure would “enhance the area for future development.”

P&G Hair Care, known for such brands as Head & Shoulders, Herbal Essence and Pantene, will use the space for bulk distribution of hair care products and ancillary offices. The building will sit on 37 acres and be accessible from Highway X-30 and Interstate 80. Scheduled for completion in April 2007, the building will have 50 dock doors, two drive-in doors and parking for cars and trailers.

A Duke spokesperson said the West Branch expansion would be the first build-to-suit construction project the company had done for P&G, though the companies have worked together on projects in Cincinnati, where Procter & Gamble is based.

Duke Realty Corporation specializes in the ownership, construction, development, leasing and management of office, industrial, medical office and retail real estate. The company says it owns, manages or has under development more than 112 million square feet in 19 major U.S. cities.

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