ProLogis Expanding in China

SUZHOU, CHINA-ProLogis says leasing at its industrial park here is ahead of schedule, in part due to strong demand from customers such as Adidas, Samsung, Nokia, Mitsui and L’Oreal. As a result, the Aurora, CO-based REIT is expanding the park by more than 800,000 sf.ProLogis Park Suzhou is a 50-50 joint venture of ProLogis and its equity partner, Suzhou Logistics Centre Co. In the spring of 2004, when ProLogis entered into the joint-venture agreement, the portfolio of 17 recently completed properties it acquired was 55% leased.With Park Suzhou now 92.8% leased and demand still strong, the joint venture is adding eight more multi-tenant buildings.Two of the eight new buildings are now under construction. They will be the first buildings developed in China by ProLogis. The two building will cost $6.5 million to develop and total 189,000 sf. Completion of the first phase expansion is expected in the second quarter of 2005. Construction of the remaining six facilities is expected to begin in the first quarter of 2005.ProLogis says both the acquired buildings and the ones now under development enjoy preferential export tax treatment. If the new buildings lease up as quickly, there will be more on the way. Jeffrey Schwartz, ProLogis’ president, COO and head of international operations says his company has enough land in Suzhou to develop an addition 2.6 million sf of distribution space.