ProLogis partners with Japanese company

ProLogis has cemented an agreement with Japan Logistics Fund Inc. to jointly own, manage and develop distribution properties in Japan.

The move is part of ProLogis’ recent strategy, launched in November 2008, to reduce risk and strengthen its balance sheet, the company said Monday.

Based in Denver, ProLogis (NYSE: PLD) is one of the world’s largest owners and managers of distribution centers with more than 475 million square feet of property in North America, Europe and Asia. The company is a real estate investment trust (REIT).

Japan Logistics Fund Inc. (JLF) is Japan’s only REIT focused on logistics properties, and is managed by Mitsui & Company Logistics Partners Ltd.

To reduce risk in its Japanese development portfolio, ProLogis plans to own and manage some of its holdings in that country with JLF, but will continue to own others. The properties to be jointly owned will be determined after the two companies finalize a formal agreement.

ProLogis’ relationship with JLF is not exclusive, according to the company. ProLogis also is in discussions with Mitsui on creating a joint development partnership.

In addition to working with JLF and potentially with Mitsui, the Colorado company will continue to work to find other third-party capital sources for its Japanese operations.