- ProLogis Park Yongin Will Comprise 400,000 Square Feet of Industrial Space -

ProLogis, a leading global provider of distribution facilities and services, announced that it plans to develop its first industrial building in South Korea this year in Gyeonggi Province, a logistics and manufacturing hub about 60 kilometers southeast of Seoul.

ProLogis Park Yongin will comprise approximately 400,000 square feet (37,200 square meters). The state-of-the-art facility will be designed to serve the growing demand for well-situated, high-quality industrial space from transport, logistics and other companies operating in Korea.

"Over the last few years, ProLogis has enjoyed tremendous success in Asia following the establishment of business operations in both China and Japan," said Jeffrey H. Schwartz, ProLogis' chief executive officer. "Launching development in South Korea, one of Asia's most important and dynamic growth markets, is a logical next step -- one that we believe will create real value both for our investors and our global customer base. We have built a core team of skilled and experienced professionals in South Korea to manage our development work and look forward to forging strong new relationships with Korean customers."

"ProLogis Park Yongin will allow us to serve leading participants in the Korean logistics industry, close to 70 percent of which is located in Gyeonggi Province," said Richard Bae, ProLogis first vice president and country manager for South Korea. "We believe this facility will help establish ProLogis as a primary provider of industrial space to the Korean market, enabling us to leverage our global presence, industry-leading experience and strong reputation for customer service."

ProLogis Park Yongin will be situated on Korea National Road-17, also known as the "R-17 Corridor." It will feature cross-docking -- uncommon in Korea -- and offer easy access to main transit arteries as well as Incheon International Airport, Incheon Sea Port and Pyungtaek Sea Port. ProLogis recently acquired the land for the facility, and construction is expected to be completed in the second half of 2006.

In addition to the new facility in Gyeonggi Province, ProLogis is also building a market presence in Incheon, another key South Korean market. In November 2005, the company signed a memorandum of understanding with the city of Incheon to develop industrial distribution facilities in the Incheon Free Economic Zone, an area around the Incheon airport and seaport designated for development by the Korean government.