HIROSHIMA, JAPAN-Continuing to invest in the island nation's industrial network, ProLogis has unveiled plans to construct a 154,000-sf warehouse in a major distribution hub on a fast-track basis. To be completed by year's end, the property is being developed on behalf of SRI Logistics, a subsidiary of Sumitomo Rubber Industries.

"Like other leading companies here, [Sumitomo] is finding ways to create value by optimizing its logistics network and outsourcing real estate," says Mike Yamada, co-president of Japan for ProLogis, in a release. "We're extremely pleased to be serving as their distribution facilities provider in the Hiroshima market, and we look forward to broadening our relationship through continued participation in this strategically important business initiative."

The SRI building will be the second investment for ProLogis in Hiroshima, a submarket of Hayashima situated in the western part of the country, having purchased a facility from Sanyo Group in March 2006. Project cost for the latest venture is estimated at $16 million, and entails construction of a three-story building, with the multi-story design reflecting Japan's tight land availability. According to Yamada, SRI will consolidate operations from multiple existing warehouses in the region as part an overhaul of its supply chain network. The firm is a leading global supplier of tires and rubber products.

ProLogis has been active in Japan for several years, recently releasing a study that concludes the country's distribution network is antiquated and inefficient, and almost always corporately owned, with ProLogis a rare third-party industrial real estate provider. The firm now has an operating portfolio of 16.6 million sf of industrial space in such markets as Hiroshima, Nagoya, Osaka, Sendai and Tokyo. Major ProLogis customers in the country include Askul, Hitachi, Nippon Express, Panasonic, Sanyo and Shinkai Group.

Listed on the New York Stock Exchange under PLD, ProLogis was trading at $65.99 per share late Friday morning. The company also announced it will release first quarter 2007 financial results on May 1. ProLogis operates in 80 markets throughout Asia, Europe and North America. The company has $26.7 billion of assets under its control, comprising more than 470 million sf in 2,465 properties.