ProLogis (
), one of the leading global providers of distribution facilities, has recently announced plans to develop a new 382,000 square feet distribution facility in Ebina, Japan. The facility would be developed for Kirin Logistics Co. Ltd., a premier Japanese third-party logistics company specializing in food and beverage industry.?
ProLogis will develop the facility on a 10-acre land owned by it. Construction work on the project is scheduled to start in July 2009 and is expected to continue till 2010. According to the deal, ProLogis would earn construction management fees as well as property management fees for the site.
The facility is strategically located in close proximity of the Atsugi-Ebina market – a leading logistics hub in Kanagawa Prefecture located south of Tokyo. Consequently, the facility would provide immediate access to cities like Yokohama and Tokyo. The property is also very close to the Kadosawa train station and would enable easy public transportation facilities to the workers.?
ProLogis owns and manages interests in over 2,500 distribution facilities, service offices, and properties spanning 475 million square feet (including properties under development) of space. As of March 31, 2009, the company had 201.1 million square feet of direct-owned industrial properties – 85.9% of which were located in North America, 11.1% in Europe, and 3.0% in Asia.
With approximately 8.2 million square feet of distribution space (both completed and under development) and 98 acres of land for future development, ProLogis is one of the largest providers of distribution facilities in Japan. Its major customers in the country include Yamato Logistics – a leading logistics company in Japan; Daikin Industries – a diversified manufacturing company; Costco – the largest membership warehouse club chain in the world based on sales volume; and Kintetsu World Express – a leading air and ocean freight company.?
Despite the continuing economic downturn, ProLogis has the wherewithal to sign new leases across the globe. The company also has a strong balance sheet to support further growth. We reiterate our Buy rating of the company.
