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TOKYO-AMB Property Corp. will commence construction of a 543,000-sf industrial building for Caterpillar Logistics Services early next year. The San Francisco-based industrial REIT says the wholly owned subsidiary of Caterpillar Inc. has preleased the estimated $87-million facility for a 15-year term.

The Caterpillar property is located in the Sagamihara submarket of Tokyo. Construction on the two-story, ramped facility for Cat Logistics is expected to begin in the first quarter of 2007. The anticipated completion date the fourth quarter of 2007.

A wholly owned subsidiary of Caterpillar Inc., Cat Logistics provides supply chain services to its parent company and dozens of other corporations. Cat Logistics chose AMB following a competitive review process. AMB chairman Hamid Moghadam describes Cat Logistics as "an AMB target customer."