ProLogis (NYSE: PLD) has announced that it will develop a new, 61,400-m² (661,000-ft²) industrial facility adjacent to Tokyo's Narita International Airport. The seven-story, multi-tenant facility, to be called ProLogis Parc Narita III, will be ProLogis' third distribution center in the strategically important Narita submarket. It will be built on a recently acquired, 12-acre parcel less than 1 kilometer from the airport's cargo entrance.
"We are extremely pleased to have successfully acquired this site, which we believe is clearly the best site for the development of distribution space in the airport area," said Mike Yamada, co-president of Japan operations for ProLogis. "Narita is one of the world's largest cargo airports, with air freight volume exceeding 2.3 million tons per annum. ProLogis has successfully built the largest industrial platform serving the airport over the past three years, and this new facility will significantly extend that leadership position."
ProLogis' other two facilities in the area - ProLogis Parc Narita I and ProLogis Parc Narita II - total approximately 64,100 m² (690,000 ft²) combined. Both facilities are now fully leased following a recent transaction with Kuehne & Nagle, a leading European logistics service provider. Construction of the new facility is scheduled for completion in the second half of 2007, with a total expected investment of approximately €83 million (US$100 million).
ProLogis' operating portfolio in Japan comprises 1.14 million m² (12.3 million ft²) of industrial space, which is currently more than 97% leased. The company has another 9.7 million ft² under development. Major customers in Japan include Nippon Express, Askul, Hitachi Transport System Ltd., Sanyo Electric Logistics, Shinkai Group and Renown.