- ProLogis Japan Fund II Also Completes $139 Million Acquisition of Distribution Center In Tokyo -
ProLogis (NYSE: PLD), a leading global provider of distribution facilities and services, announced today that it will build a major new distribution facility in Japan for Hitachi Transport System Ltd., a third-party logistics company and subsidiary of Hitachi, one of the world's largest providers of consumer electronics and other products and services.

The five-story facility -- ProLogis Parc Maishima II -- will be developed in Osaka and comprise 569,000 square feet (52,900 square meters). Completion is expected in the second half of 2006.

"ProLogis has developed a close relationship with Hitachi Transport since entering the Japanese market in 2001," said Mike Yamada, managing director of ProLogis in Japan. "Today, Hitachi leases more than 1.2 million square feet from us in multiple locations across the country. We're very pleased to announce this latest transaction, which underscores the value ProLogis can deliver to its strategic customers as they build, extend and streamline their logistics operations."

Hitachi Transport currently leases from ProLogis in the following additional locations in Japan:

* 801,000 square feet (74,400 square meters) at ProLogis Parc Kazo outside
      Tokyo;
    * 199,000 square feet (18,500 square meters) at ProLogis Parc Tomiya in
      the port city of Sendai;
    * 137,000 square feet (12,700 square meters) at ProLogis Parc Narita II
      near Tokyo's Narita International Airport;
    * 87,000 square feet (8,100 square meters) at ProLogis Parc Yokohama in
      the city of Yokohama.

The company also leases 176,000 square feet (16,350 square meters) from ProLogis in Tijuana, Mexico.

ProLogis Parc Maishima II will be located near the Port of Osaka and next to ProLogis Parc Maishima I, a 785,000-square-foot (72,900 square meters) facility under development that has been pre-leased to Askul Corporation, a Japanese distributor of stationary, business supplies, electronics and other products. ProLogis also has an option on additional land at the site, allowing for future expansion as warranted by customer demand.

Also today, the company announced that ProLogis Japan Properties Fund II has acquired a 1.1-million-square-foot (103,300 square meters) building in metropolitan Tokyo for approximately US$139 million. The facility is fully leased to Renown, a Japanese distributor of textiles and apparel. It will be called ProLogis Parc Narashino II and is located in between downtown Tokyo and Japan's Narita Airport. Renown will continue to operate the building under a long-term lease with ProLogis as its primary distribution center in Japan.

The transaction also includes an adjacent parcel of vacant land acquired by ProLogis for the construction of an additional 459,000 square feet (42,700 square meters) of industrial space. The purchase price for the land was approximately US$24 million.
Source: Press Release