ProLogis to Develop New Facility for Royal Mail in England

- Company Signs Development Management Agreement for 200,000 Square Feet at Major Distribution Park in Northampton -

BIRMINGHAM, England, Feb. 24 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), a leading global provider of distribution facilities, announced today that it will construct a 200,000-square-foot distribution center in Northampton, England, for Royal Mail, the postal service of the United Kingdom, under a development management agreement.

Royal Mail's new facility is currently under construction at Swan Valley, a 210-acre distribution park located next to junction 15A of the M1 motorway, which links London to the Midlands and the northern UK. The parks' land-owner, Aviva Investors, is fully funding the development with ProLogis managing the construction process. Royal Mail, which is consolidating its operations in Coventry, Northampton and Milton Keynes, will own the property upon completion, scheduled for the first half of this year.

"Our new fee agreement with Aviva Investors and Royal Mail is a solid demonstration of our ability to provide state-of-the-art distribution warehouses that satisfy the needs of the UK's leading companies," said Andrew Griffiths, managing director for ProLogis in the United Kingdom. "As one of the world's most experienced builders of industrial facilities, our customers and partners tap into our deep development expertise and network of suppliers to achieve cost-effective solutions. We are very pleased to be working with Aviva Investors and Royal Mail at Swan Valley."

"After thoughtful consideration, Royal Mail selected ProLogis and Aviva Investors to develop its new mail sorting center and distribution hub in Northampton for several reasons," said Michael Dalton, head of external relations, central and west group, corporate and government affairs for Royal Mail. "Swan Valley offers one of the most central locations in the U.K. for distribution operations, and we are confident in ProLogis' ability to deliver a state-of-the-art, sustainable distribution warehouse in the required timescale. We look forward to occupying our new facility."

Swan Valley is recognized as one of the UK's premier locations for distribution warehouses. Current customers include Carlsberg, Levi-Strauss and WM Morrison.

ProLogis' UK distribution portfolio currently comprises 20 million square feet of industrial space owned and managed. Other major customers in the country include ASOS.com, Bosch-Siemens, The Co-operative Group, Debenhams, DHL, GEFCO, Honda Logistics, Marks & Spencer, Sainsbury's, Screwfix, Spec Savers and Superdrug.

About ProLogis

ProLogis is a leading global provider of distribution facilities, with more than 475 million square feet of industrial space (44 million square meters) in markets across North America, Europe and Asia. The company leases its industrial facilities to more than 4,000 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. For additional information about the company, go to http://www.prologis.com.

SOURCE ProLogis

Released February 24, 2009