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HIROSHIMA, JAPAN-Continuing to invest in the island nation's industrial network, ProLogis has unveiled plans to construct a 154,000-sf warehouse in a major distribution hub on a fast-track basis. To be completed by year's end, the property is being developed on behalf of SRI Logistics, a subsidiary of Sumitomo Rubber Industries.

"Like other leading companies here, [Sumitomo] is finding ways to create value by optimizing its logistics network and outsourcing real estate," says Mike Yamada, co-president of Japan for ProLogis, in a release. "We're extremely pleased to be serving as their distribution facilities provider in the Hiroshima market, and we look forward to broadening our relationship through continued participation in this strategically important business initiative."

The SRI building will be the second investment for ProLogis in Hiroshima, a submarket of Hayashima situated in the western part of the country, having purchased a facility from Sanyo Group in March 2006. Project cost for the latest venture is estimated at $16 million, and entails construction of a three-story building, with the multi-story design reflecting Japan's tight land availability. According to Yamada, SRI will consolidate operations from multiple existing warehouses in the region as part an overhaul of its supply chain network. The firm is a leading global supplier of tires and rubber products.