OSAKA, JAPAN-ProLogis Japan Properties Fund II has signed an agreement to acquire 888,000 sf in three distribution buildings in the region from electronics manufacturer Sanyo Electric Co. Ltd. and distribution subsidiary Sanyo Electric Logistics Co. The purchase price is $118 million.

The properties include a two-building complex in Osaka that serves as Sanyo Electric Logistics' headquarters and primary distribution center, and an industrial facility in the city of Kobe, northwest of Osaka. Sanyo Electric Logistics will continue to occupy the facilities in Osaka under a new, long-term leaseback agreement with the fund. The Kobe facility is fully leased to Shinkai Transportation Systems, a Japanese logistics services provider that has a "multi-year lease," according to ProLogis Trust, which operates the fund and manages its assets.

"Increasingly, corporations are seeking to streamline their balance sheets, reduce costs and maximize the efficiency of their operations," says ProLogis Japan co-president Masato Miki. "ProLogis has been a real beneficiary of this trend."

The two-building Sanyo complex is located in Hirakata City, northeast of Osaka's CBD. Combined, the buildings comprise approximately 787,000 sf of industrial space. The other facility totals 101,000 sf and is located in the Kobe Distribution Park northwest of Downtown Kobe.

ProLogis also is acquiring from Sanyo facilities in Tokyo and Okayama totaling 307,000 sf. The purchase price is approximately $22 million. ProLogis plans to pursue repositioning opportunities at both locations.

Sanyo is one of the world's largest electronics manufacturers. Sanyo Logistics serves as the company's distribution arm, providing transportation, distribution and other services for Sanyo and a variety of third-party customers.

ProLogis operates or has under development more than 18 million sf of distribution space Japan. The space is concentrated around Tokyo, Nagoya, Osaka/Kobe and Sendai. In addition to Sanyo, ProLogis' customers in Japan include DHL, Hitachi Transport, Matsushita Logistics, Nippon Express, Seiyu Ltd., and Senko Co. Ltd.