SHANGHAI-Industrial development giant ProLogis continues to quickly ramp up its commercial real estate platform in China, unveiling a pair of new construction projects that will yield nearly 1.7 million sf of modern distribution space. Active in the Chinese market since arriving there in 2004, ProLogis already has 15.5 million sf under management or in the pipeline, and company officials say the new additions will further enhance its footprint in the country.

In the latest ventures, ProLogis is constructing a pair of two-story buildings at ProLogis Park Hongqiao West near the Shanghai Hongqiao International Airport, one of China's main air cargo operations. Having acquired the property earlier this year, ProLogis is spending $52 million to expand the complex by another 920,000 sf. In Shenzhen, the REIT has launched the first phase of construction at ProLogis Park Yantian, located near Yantian Port. That $48-million investment will produce a pair of three-story facilities comprising 750,000 sf. In both cases, ProLogis made its choice of site selection prudently based on transit capabilities, according to Ming Mei, the company's president for China.

"Furthering our leading airport and seaport-related position is a central aspect of the ProLogis development strategy in China," says Mei. "We expect the strategic location of our new parks in Shanghai and Shenzhen to attract leading multinational manufacturers, retailers and third-party logistics providers, and we look forward to serving their distribution facilities requirements here." Major multinational customers using ProLogis facilities in China include Best Buy, DHL, Nokia, Samsung, UPS and Yumi Brands.

ProLogis Park Hongqiao West will ultimately have five buildings and 1.8 million sf at full build-out. The property is located about 10 miles from the airport, a facility ranked fifth largest in China by cargo volume, handling an estimated 360,000 tons annually. Shanghai is about 20 miles from the industrial park. ProLogis Park Yantian is also in a market that processes substantial cargo, as evidenced by its status as a foreign trade zone. The Shenzhen Port complex is ranked as the world's fourth largest by cargo volume.

Based in Denver, ProLogis has a portfolio in excess of 438 million sf in 2,669 properties that are located in 20 countries throughout Asia, Europe and North America. The value of those assets is $34.4 billion.