ProLogis contributes first building to Japan Logistics Fund Alliance

ProLogis announced that it has completed the contribution of ProLogis Parc Narashino III to its alliance with Japan Logistics Fund, Inc. and Mitsui & Co. Logistics Partners Ltd. (JLF) for a gross value of approximately $86 million, representing a 5.9% cap rate on total costs.

The alliance was established in August 2009 as a vehicle for ProLogis and JLF to jointly own state-of-the-art distribution facilities in Japan that were developed by ProLogis and for which ProLogis would earn fees for continuing to manage and lease the properties.

ProLogis Parc Narashino III is a five-story, 530,000-square-foot distribution facility located in the Narashino City and is adjacent to both the Higashi Kanto and Keiyo Expressways.

Located halfway between Narita Airport and downtown Tokyo, the facility serves both the metropolitan areas of Chiba and Tokyo and includes customers such as third-party logistics providers Yamato Logistics and Sanyo Electric Logistics.

It is anticipated that ProLogis will provide JLF with additional investment opportunities, although the alliance has no exclusivity component.