ProLogis is developing the facility in Dubai Logistics City(DLC), a new logistics hub less than 20 minutes from the Port ofJebel Ali, the world's seventh largest container port, and thefuture Dubai World Central International Airport. Construction,which has already started, is scheduled to be complete in thesecond half of 2008.

"We have been investigating business opportunities in thisregion for more than a year and believe that this new transactionwithin DLC provides an excellent opportunity for ProLogis to beginits Middle Eastern operations," says ProLogis chair and CEO JeffSchwartz. He says Dubai benefits from a centralized location andimmediate access to major modes of transport.

According to Melissa Marsden, senior vice president of investorrelations and corporate communications for ProLogis, the region isattracting significant foreign direct investment, which has led toincreased personal income. This in turn is driving growth indomestic consumption and creating a need for efficient logisticsoperations. "Over time, we think the Middle East could represent upto $300 million to $400 million of annual development," shesays.