ProLogis Expands Industrial Platform in Southern California

DENVER, Sept. 7 /PRNewswire-FirstCall/ -- ProLogis , a leading global provider of distribution facilities and services, announced today that it has acquired a 700,000-square-foot industrial building in southern California's Inland Empire region, one of the nation's most vibrant distribution markets.

The newly developed building is located in the city of Redlands east of Ontario International Airport. ProLogis will incorporate the facility into its existing industrial park in the area, ProLogis Park Redlands, which currently comprises four distribution centers totaling 1.8 million square feet.

"This acquisition further extends our position as the Inland Empire's leading industrial facilities provider," said Charles McPhee, ProLogis senior vice president and regional director of capital deployment. "Demand for well-located distribution space in the area continues to be remarkable, given its proximity to Los Angeles and the ports of L.A. and Long Beach. Meanwhile, the local supply of large-scale bulk facilities remains severely constrained, resulting in overall market vacancies of less than 2 percent and strong absorption of new inventory. We look forward to integrating the new facility into our portfolio and to marketing it to existing and prospective customers with distribution needs in this area."

Also today, ProLogis announced it has leased a 260,000-square-foot distribution facility at ProLogis Park Redlands to Michelin North America, Inc. The facility will be used for warehousing and regional distribution of Michelin(R) products. As a result of that transaction, ProLogis' four previously developed buildings at the park are now 100 percent leased.

"Michelin is one of the world's great brands, and we're very pleased to be serving as their industrial facilities provider at ProLogis Park Redlands," said Mike Del Santo, ProLogis first vice president. "With our previously developed buildings at the park now fully occupied, we expect to see strong customer interest in our newly acquired facility."

"ProLogis Park Redlands is well located for both local and regional distribution of Michelin's products," said Chris McNutt, real estate manager for Michelin North America, Inc. "We look forward to working with ProLogis and to realizing the operational benefits and logistical efficiencies offered by this new facility."

ProLogis Park Redlands offers easy access to five interstate highways and serves as an effective distribution point for markets throughout California, Arizona and Nevada. At full buildout, the park will consist of eight buildings totaling approximately 4 million square feet.

ProLogis is the largest owner of industrial distribution space in the Inland Empire, with more than 65 facilities totaling more than 26 million square feet operational or under development. Other customers in the region include APL Logistics, Ashley Furniture, Big Lots, Black & Decker, Burlington Coat Factory, CKE Restaurants, Clorox, Exel, Gillette, Ford Motor Co., Skechers, Simpson Manufacturing, Solo Cup, Unilever, Volkswagen, and Wal-Mart.

About ProLogis

ProLogis is a leading provider of distribution facilities and services with 404.3 million square feet (37.6 million square meters) in more than 2,400 properties owned, managed and under development in 81 markets in North America, Europe and Asia as of June 30, 2006. We continue to expand the industry's first and largest global network of distribution facilities with the objective of building shareholder value. We expect to achieve this through the ProLogis Operating System(R) and our commitment to provide exceptional facilities and services to meet our customers' expansion and reconfiguration needs.