The buildings are located in Tokyo, Osaka, Hiroshima and otherlocations across Japan. They will be leased long-term to one ofProLogis' largest Japanese customers, Hitachi Transport, which isacquiring Shiseido's logistics subsidiary and will provide supplychain management services to the company.

ProLogis Japan Properties Fund II is a venture of Denver-basedProLogis. Masato Miki, co-president ProLogis Japan, says the salereflects an ongoing trend in Japan wherein manufacturers aredisposing of real estate and outsourcing supply-chain management inan effort to strengthen their balance sheets and focus on theircore business operations.

Hitachi Transport leases more than 1.8 million sf from ProLogisin Tokyo, Osaka and Sendai. ProLogis' operating portfolio in Japantotals 15.6 million sf concentrated in the markets of Tokyo, Osaka,Nagoya, Fukuoka, Hiroshima and Sendai. The company has anadditional 5.7 million sf under development.