Its joint venture partner and majority owner will be GIC Real Estate Pte Ltd., the real estate investment company of the Government of Singapore Investment Corp.

The fund will own newly developed and acquired properties throughout the country, but the focus will be on Tokyo, Osaka and Nagoya.

GIC RE has committed a total of $300 million in equity and will have an 80% stake in the fund. The fund's total capacity, including GIC RE's equity, ProLogis' future equity contributions and secured debt the fund intends to put in place, will be approximately $1 billion.

ProLogis is no stranger to Japan, and despite economic woes there, sees opportunity for state-of-the-art distribution centers, Walter C. Rakowich, chief financial officer of the company tells GlobeSt.com.

''We've been in Japan for three years, two of which we've been studying the market,'' Rakowich tells GlobeSt.com. "This is our first trust fund, but we've invested about $50 million there already. Basically, we develop buildings on our own balance sheet and contribute them to the fund. We will also be able to acquire new properties from third parties."

ProLogis plans to contribute its first development project in Japan, a 196,000-sf build-to-suit distribution facility for DHL International in Tokyo to the fund this fall.

Rakowich tells GlobeSt.com that the $7.2 billion market cap ProLogis will invest about $75 million in the fund, primarily through the contribution of its properties.

In addition to GIC's $300 million in equity, the fund will raise debt.

''The fund will own 100% of everything, and Singapore will own 80% of the fund and we will own 20%," Rakowich says.

Japan's distribution and logistics systems are antiquated and inefficient. In order to be competitive, they must be cutting edge, he says.