- Contributes euro 110 ($151) Million of Assets to European Property Fund -

- Closed Previously Reported $128 Million Asset Sale in Japan -

DENVER, June 30 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), a leading global provider of distribution facilities, announced today that it has generated approximately $840 million of gross proceeds from the sale of industrial assets as well as contributions to property funds in the second quarter of 2009.

"We are pleased to announce the successful execution of this important element of the action plan we outlined last fall," Walter C. Rakowich, chief executive officer, said. "Our focus on reducing the level of debt and risk in our business included generating proceeds from the sale of some of our industrial assets and continued contributions of development assets into our property funds.

"The quality of our portfolio and long-term attractiveness of industrial assets enabled us to achieve our targets, despite challenging capital market conditions. Through these and other recent initiatives, we have significantly enhanced our liquidity."

North American Asset Sales Substantially Complete

As previously disclosed, ProLogis had identified a portfolio of North American industrial assets that it began marketing for sale in late 2008. In connection with this effort, the company closed on asset sales totaling $561 million in the second quarter with an additional $96 million of properties expected to close in the second half of the year. This pool of $657 million of assets comprises 136 properties, totaling 14.2 million square feet, and is expected to be sold in 28 separate transactions. The $561 million of second quarter sales are expected to generate approximately $200 million of net earnings, which will be recognized in earnings per share but not in funds from operations.

The blended, stabilized cap rate for the $657 million portfolio of assets is expected to be 8.89 percent. The properties average 20 years in age and 105,000 square feet in size and are geographically diverse, located in markets that include Chicago, Houston, Dallas, Atlanta, Memphis, Northern and Southern California, Seattle, Portland, Phoenix, Washington, D.C. and Northern New Jersey.

Included in these transactions is a single venture with a major state pension fund. ProLogis sold a portfolio of 90 properties, comprising 9.6 million square feet of space, to the venture for total proceeds of $426 million. The company will retain a five percent interest in the venture and continue to manage the assets.