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AURORA, CO-ProLogis, the world's largest industrial real estate investment trust, is preparing to invest the ProLogis Japan Properties Fund II, a $3-billion pool of money for investment opportunities. GIC Real Estate Pte Ltd., or GIC RE, the real estate investment company of the Government of Singapore Investment Corp., has committed a total of $600 million of yen of equity and will have an 80% stake in the fund. GIC RE also was ProLogis' partner in its initial ProLogis Japan Properties Fund, formed in June 2002.

This exclusive joint venture will own newly developed and acquired properties in the company's targeted distribution markets across Japan with a primary focus on Tokyo, Osaka/Kobe and Nagoya. The fund's capacity upon full investment of the committed capital, including GIC RE's equity, ProLogis' equity contributions and secured debt that the fund intends to put in place, will be approximately $3 billion.

Combining the capacity from this new fund with more than $1.3 billion from the initial ProLogis Japan Properties Fund, which is expected to be fully invested by the end of 2005, will permit ProLogis to expand its joint venture platform in Japan to approximately $4.3 billion. ProLogis will hold a 20% equity ownership and continue to manage the fund under essentially the same terms as the initial fund. It will provide services such as property and asset management, property acquisitions and dispositions.

"This is clearly a reflection of our success with the initial fund, which we formed just three years ago," says Jeffrey H. Schwartz, CEO of ProLogis. In Japan, ProLogis currently controls 7.8 million sf of distribution space with another 5.7 million sf planned or under development.

Instant Insights /

ProLogis Corrals $3B for Japanese Development

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