(Read more on the industrial market.)

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HIROSHIMA, JAPAN-Continuing to invest in the island nation'sindustrial network, ProLogis has unveiled plans to construct a154,000-sf warehouse in a major distribution hub on a fast-trackbasis. To be completed by year's end, the property is beingdeveloped on behalf of SRI Logistics, a subsidiary of SumitomoRubber Industries.

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"Like other leading companies here, [Sumitomo] is finding waysto create value by optimizing its logistics network and outsourcingreal estate," says Mike Yamada, co-president of Japan for ProLogis,in a release. "We're extremely pleased to be serving as theirdistribution facilities provider in the Hiroshima market, and welook forward to broadening our relationship through continuedparticipation in this strategically important businessinitiative."

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The SRI building will be the second investment for ProLogis inHiroshima, a submarket of Hayashima situated in the western part ofthe country, having purchased a facility from Sanyo Group in March2006. Project cost for the latest venture is estimated at $16million, and entails construction of a three-story building, withthe multi-story design reflecting Japan's tight land availability.According to Yamada, SRI will consolidate operations from multipleexisting warehouses in the region as part an overhaul of its supplychain network. The firm is a leading global supplier of tires andrubber products.

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ProLogis has been active in Japan for several years, recentlyreleasing a studythat concludes the country's distribution network is antiquated andinefficient, and almost always corporately owned, with ProLogis arare third-party industrial real estate provider. The firm now hasan operating portfolio of 16.6 million sf of industrial space insuch markets as Hiroshima, Nagoya, Osaka, Sendai and Tokyo. MajorProLogis customers in the country include Askul, Hitachi, NipponExpress, Panasonic, Sanyo and Shinkai Group.

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Listed on the New York Stock Exchange under PLD, ProLogis wastrading at $65.99 per share late Friday morning. The company alsoannounced it will release first quarter 2007 financial results onMay 1. ProLogis operates in 80 markets throughout Asia, Europe andNorth America. The company has $26.7 billion of assets under itscontrol, comprising more than 470 million sf in 2,465properties.

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