Prologis Announces Pricing of REIT in Japan

Prologis, Inc. (NYSE: PLD), theleading global owner, operator and developer of industrial real estate, todayannounced the pricing of 182,350 units at a price of 550,000 Japanese yen perunit of Nippon Prologis REIT, Inc. (NPR), a Japanese real estate investmenttrust. The offering was priced at the high end of the range and comprised adomestic placement of 109,410 units (60 percent of units outstanding) and aninternational placement of 72,940 units (40 percent of units outstanding).Prologis is contributing 12 Class-A properties in Japan to NPR (3283:TokyoStock Exchange) for initial consideration of approximately JPY 173 billion($1.9 billion). The sale of the assets is expected to be completed on Feb. 15,2013. Inclusive of NPR's concurrent borrowings, net cash proceeds to Prologisfrom the sale are expected to be JPY 153 billion ($1.7 billion), before thegreenshoe option. Prologis intends to use the proceeds primarily for therepayment of debt and future investment in Japan.The portfolio, with a weighted average age of 3.4 years, totals 9.6 millionsquare feet (890,000 square meters), and is principally located in its globalmarkets of Tokyo and Osaka. NPR has exclusive negotiation rights for eightadditional properties owned by Prologis, and will receive pipeline,operational and personnel assistance under a sponsor support agreement. Inaddition, wholly owned subsidiaries of Prologis will serve as NPR's propertyand asset managers.Prologis will initially hold 20 percent of NPR and if the greenshoe option of9,118 units is exercised in full, Prologis' investment will be reduced toapproximately 15 percent. NPR is expected to list on the Tokyo Stock Exchangeon Feb. 14, 2013.