The yen-denominated, three-year revolving line of credit is priced at 100 basis points over the Tokyo Interbank Offering Rate, or Tabor. This equates to an interest rate of about 1.07%, based upon the initial TIBOR borrowing.

"This Japanese credit facility was two times oversubscribed,'' says K. Dane Brooksher, chairman and chief executive officer. ''The syndicate includes eight banks that are new to ProLogis, six of which are new Asian bank relationships. The successful completion of this line of credit demonstrates our ability to access sources of capital from around the globe.''

Brooksher adds: ''By utilizing low-cost debt, we will significantly boost our returns in Japan while at the same time match yen-based expenses with future yen income to provide a natural currency hedge."

The line of credit will be used principally to finance Japanese land acquisition and development of distribution properties that ultimately are intended to be transferred to a Japanese venture or fund.

This strategy, which has been successfully employed by the company to fund its expansion in Europe, permits ProLogis to take advantage of opportunity in Japan while maintaining management of its properties and enhancing returns by utilizing private sources of capital to fund its growth.

ProLogis has more than 200.4 million sf of distribution facilities owned, operating or under development in 99 global markets.

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