Prologis, Inc. Leases 723,000 SF in Three Japan Developments
SAN FRANCISCO, July 11, 2011 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD), the leading global owner, operator and developer of industrial real estate, today announced four new lease agreements signed in the second quarter, totaling approximately 723,000 square feet (67,350 square meters), in three facilities in its Japan development portfolio.
"The natural disasters we experienced in March have underscored the need in our markets for high-quality distribution space," said Mike Yamada, president of Prologis Japan. "Our facilities represent some of the most modern and soundly constructed buildings available, incorporating numerous sustainable features and seismic resistance technology. Now more than ever, customers recognize the value of these features to their business continuity."
Second-quarter leasing activity in Prologis' Japan development portfolio includes the following:
# 325,900 square feet (30,420 square meters) leased to a leading third-party logistics provider. The customer will occupy space at Prologis Park Kawajima, a 1.55-million-square-foot (144,000 square meters) distribution facility currently under construction in Tokyo. The customer will take occupancy upon completion of the facility at the end of this month. With this transaction the facility is now 40 percent pre-leased. # 328,000 square feet (30,480 square meters) leased to Nippon Access, a major 3PL specializing in food products, and Nippon Express, the largest 3PL in Japan. These customers will occupy the space at Prologis Park Iwanuma 1, located in Sendai. With these two leases, the facility is now fully leased. # 69,500 square feet (6,450 square meters) leased to TL Logicom. This 3PL customer will occupy the space at Prologis Park Maishima 3, located in Osaka, bringing the facility to 92 percent occupancy.
Prologis is a leading provider of distribution space in Japan, with approximately 23.2 million square feet (2.1 million square meters) completed and under development, as well as 80 acres (32 hectares) of land available for future development. Other Prologis customers in Japan include Panasonic Logistics, Kirin Logistics, Sagawa Global Logistics, Caterpillar Logistics Services, Inc., Yamato Logistics, Hitachi Transport System and Costco.
Prologis, Inc. is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of March 31, 2011, on a pro forma basis giving effect to the merger, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total more than 600 million square feet (55.7 million square meters) in 22 countries. The company leases modern distribution facilities to more than 4,500 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.
Some of the information included in this press release contains forward-looking statements which are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future events. The events or circumstances reflected in forward-looking statements might not occur. You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "pro forma," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases. 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The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: changes in general economic conditions in California, the U.S. or globally (including financial market fluctuations), global trade or in the real estate sector (including risks relating to decreasing real estate valuations and impairment charges); risks associated with using debt to fund the company's business activities, including refinancing and interest rate risks; the company's failure to obtain, renew, or extend necessary financing or access the debt or equity markets; the company's failure to maintain its current credit agency ratings or comply with its debt covenants; risks related to the merger transaction with ProLogis, including litigation related to the merger, and the risk that the merger may not achieve its intended results; risks related to the company's obligations in the event of certain defaults under co-investment venture and other debt; defaults on or non-renewal of leases by customers, lease renewals at lower than expected rent or failure to lease properties at all or on favorable rents and terms; difficulties in identifying properties, portfolios of properties, or interests in real-estate related entities or platforms to acquire and in effecting acquisitions on advantageous terms and the failure of acquisitions to perform as the company expects; unknown liabilities acquired in connection with the acquired properties, portfolios of properties, or interests in real-estate related entities; the company's failure to successfully integrate acquired properties and operations; risks and uncertainties affecting property development, redevelopment and value-added conversion (including construction delays, cost overruns, the company's inability to obtain necessary permits and financing, the company's inability to lease properties at all or at favorable rents and terms, and public opposition to these activities); the company's failure to set up additional funds, attract additional investment in existing funds or to contribute properties to its co-investment ventures due to such factors as its inability to acquire, develop, or lease properties that meet the investment criteria of such ventures, or the co-investment ventures' inability to access debt and equity capital to pay for property contributions or their allocation of available capital to cover other capital requirements; risks and uncertainties relating to the disposition of properties to third parties and the company's ability to effect such transactions on advantageous terms and to timely reinvest proceeds from any such dispositions; risks of doing business internationally and global expansion, including unfamiliarity with the new markets and currency risks; risks of changing personnel and roles; losses in excess of the company's insurance coverage; changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws; increases in real property tax rates; risks associated with the company's tax structuring; increases in interest rates and operating costs or greater than expected capital expenditures; environmental uncertainties and risks related to natural disasters; and our failure to qualify and maintain our status as a real estate investment trust. Our success also depends upon economic trends generally, various market conditions and fluctuations and those other risk factors discussed under the heading "Risk Factors" and elsewhere in our most recent annual report on Form 10-K for the year ended December 31, 2010 and our other public reports.
SOURCE Prologis, Inc.
Released July 11, 2011