TOKYO- Hitachi Collabonext Transport System Co. has signed alease for 328,000 square feet of the 1.55-million-square-footProLogis Parc Kawajima, a project now under construction. Thetenant, a subsidiary of Hitachi Transport System, a leadingthird-party logistics provider, is scheduled to occupy the space atProLogis Parc Kawajima in mid-2011 when the new distributionfacility is completed.

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Mike Yamada, president for ProLogis in Japan, said that inaddition to the signed agreement with Hitachi Transport, ProLogisis under way with preleasing discussions with additional customersand has letters of intent or expressions of interest for more thanone-third of the space. Yamada describes the tenant interest as "asign that the Tokyo market supports the need for new, high-qualitydistribution space."

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ProLogis resumed development of ProLogis Parc Kawajima, afterpreviously halting construction, in the first quarter of 2010 inresponse to customers' ongoing distribution needs. Yamada notesthat demand for new, modern distribution space has remainedconsistent "throughout the global recession."

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Commenting further on the market, Yamada adds, "Businessescontinue to shift from owning to leasing facilities while othersfocus on consolidating distribution operations from older buildingsinto newer, state-of-the-art distribution centers to increaseefficiencies."

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In 2008, ProLogis made plans to build the five-story,1.55-million-square foot distribution center near Tokyo.Construction was halted on the facility when ProLogis placed allglobal development starts on hold in response to the globalrecession.

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