Distribution Centers in Okegawa and Funabashi City Total 566,000 Square Feet of Industrial Space
Narita II, Tokyo II Parks Now Fully Committed Through New Leases or Letters of Intent

ProLogis (NYSE: PLD), a leading global provider of distribution facilities and services, announced today that ProLogis Japan Properties Fund II has agreed to acquire two industrial buildings outside Tokyo in separate transactions. The combined investment at the two locations will be approximately US$75 million.

The first distribution facility totals 377,000 square feet (35,000 square meters) and is located in Funabashi City, 20 kilometers northeast of downtown Tokyo. The property is leased to a privately held logistics services provider. The second totals 189,000 square feet (17,600 square meters) and is located in Okegawa City, 40 kilometers northwest of the downtown area. It is leased to Nippon Express, Japan's largest third-party logistics company and a customer of ProLogis' at multiple locations in Asia, Europe and North America.

"Since the beginning of the year, our second Japan fund has directly acquired over 2.5 million square feet of high-quality industrial space in Tokyo, Osaka and Kobe," said Masato Miki, co-president of ProLogis' Japanese operations. "These transactions have significantly enhanced our overall platform in Japan, while building and strengthening relationships with new and existing customers. We're pleased to announce these latest acquisitions and look forward to integrating the new facilities into our portfolio."

ProLogis' total operating portfolio in Japan comprised 11.5 million square feet (1.07 million square meters) of industrial space at the end of the first quarter 2006. The company had another 8.5 million square feet under development, including ProLogis Parc Tokyo II, an 852,000-square-foot (79,000- square-meter) facility scheduled for completion in mid year. As previously disclosed, that facility is already 85 percent pre-leased, with the remainder of the space fully committed through letters of intent. Additionally, ProLogis Parc Narita II, located near Tokyo's Narita International Airport, is now 100 percent leased following a transaction for 141,000 square feet (13,100 square meters) with Kuehne & Nagel, a leading European logistics service provider.

Also today, ProLogis announced it has directly acquired a 178,000-square- foot (16,500-square-meter) facility in Osaka. The building is currently leased to Koizumi Logistics Corporation, the logistics arm of a Japanese lighting and furniture manufacturer. ProLogis plans to pursue repositioning opportunities at the site.

ProLogis has established a $2.7 billion platform of industrial facilities in Japan since launching operations there in 2002. Today, the company's portfolio of properties is concentrated in multiple locations around Tokyo, Nagoya, Osaka/Kobe and Sendai. Customers in Japan include DHL, Hitachi Transport, Matsushita Logistics, Renown, Sanyo Electric Logistics, Seiyu/Wal- Mart and Senko Co. Ltd.

SOURCE ProLogis