ProLogis develop new facility for LG Electronics

ProLogis, a leading global provider of distribution facilities, announced today that it will develop a new, 51,500 square-meter distribution facility in the Netherlands for Hi-Logistics, a wholly owned logistics subsidiary of LG Electronics.

Walter Rakowich, ProLogis chief executive officer said, "A part of this process has been to redefine how we approach new development, focusing more on development management opportunities and build-to-suit transactions utilizing our land bank, and when possible, investing our capital alongside that of our partners and customers."

ProLogis will build the facility on a 20-acre (eight-hectare) parcel of land it currently owns in the city of Oosterhout, one of the main logistics hubs in the Netherlands. Upon completion of the facility, the project will be contributed to the ProLogis European Property Fund II, thereby generating proceeds and reducing risk to the company.

Hi-Logistics will use the space to distribute LG products regionally throughout Northern Europe. While this is Hi-Logistics' first lease agreement with ProLogis, LG Electronics is one of ProLogis' largest customers and currently occupies a total of approximately 243,300 square meters of distribution space with the company across the United States and Europe.

"Locating in Oosterhout will enable Hi-Logistics to take advantage of a popular logistics location in Northern Europe, with quick access to transportation via truck, train or barge terminals," said Jae Sun Lee, president of Hi-Logistics Europe.

Construction on the facility will commence in July 2009, and is expected to be completed in the spring of 2010. ProLogis has additional land at the site with the ability to support another 431,000 square feet (40,000 square meters) of future distribution space.