ProLogis Forms $1.3 Billion European Properties Fund / Fund Includes Over $1 Billion in Third-Party Equity for European Expansion

DENVER (PROTEXT) - WITH PHOTO - Total Fund Investment Capacity of $2.7 Billion ProLogis (NYSE: PLD), a leading global provider ofdistribution services and facilities, today announced theformation of the ProLogis European Properties Fund ("the Fund").The Fund enables ProLogis to take advantage of the extraordinarygrowth opportunity in Europe by accessing third party equitycapital for the expansion of the ProLogis Operating System(TM). Atotal of $1.07 billion of third party equity has been committedby a group of 16 institutional investors through a privateplacement, which when combined with ProLogis' equity investmentand debt financings, brings the total committed capitalization ofthe Fund to $2.7 billion by year-end 2002. (Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990420/PROLOGIS ) ProLogis will contribute to the Fund approximately 6.6 millionsquare feet of stabilized European distribution properties,valued at $352 million ($171 million in equity, $181 million indebt). The Fund also will purchase ProLogis' future stabilizedEuropean development properties. The Fund will be managed withinthe ProLogis Operating System pursuant to a 20-year managementcontract and will enhance ProLogis' ability to provide servicesand facilities to its global customer base. ProLogis will havethe largest equity interest in the Fund and will maintain aminimum equity ownership in the Fund of 20%. The Fund will have aconservative capital structure and will be operated with amaximum leverage ratio of 50%. Fund Enhances Return on Shareholders' Invested Capital K. Dane Brooksher, ProLogis chairman and chief executiveofficer, said, "The ProLogis European Properties Fund allows usto expand the ProLogis Operating System in Europe, serve ourglobal customers and maintain long-term management and control ofour pan-European distribution facilities without raisingadditional common equity. ProLogis' equity requirement for ourplanned expansion in Europe is now complete. In addition, theFund will enhance ProLogis' shareholder returns on investedcapital through cash flow generated from the company's ownershipin the Fund, ongoing profits from the sale of developmentproperties to the Fund, returns on reinvestment of developmentprofits, and asset management fee income." Fund to Capture Significant European Growth Opportunity Jeffrey H. Schwartz, vice chairman for internationaloperations, said, "The demand for distribution space in Europecontinues to grow rapidly as cross-border trade increases andmany major companies move to consolidate and reconfigure theirdistribution networks. This consolidation and the emergence ofdominant regional distribution centers has led many multinationalcompanies to seek a single source provider that can meet theirdistribution facility requirements across Europe. Frequently,development of new facilities is desired due to the functionalobsolescence of much of the existing space and the limited supplyof new space in European markets. ProLogis has a unique marketposition. We are the only company operating on a pan-Europeanbasis, we control over 2,000 acres of land for development and wehave the capital to capture this extraordinary growthopportunity." Schwartz added, "The ProLogis European Properties Fund is thefirst of its kind in Europe, bringing together institutionalinvestors from across the globe that historically had notinvested in real estate on a pan-European basis. The overwhelmingresponse to the Fund from such high-quality institutionalinvestors demonstrates their support of ProLogis' pan-Europeanstrategy and their confidence in our ability to captureadditional growth opportunities through our expandingrelationships with global customers." Peter Wittendorp, executive vice president of ABP, the largestpension fund in Europe and a lead investor in the Fund, said, "Weare very excited to have a significant role in forming theProLogis European Properties Fund, which is both at the forefrontof creating pan-European property companies and of satisfying thetremendous growth in demand for distribution space across Europe.The unique position of the Fund meets our investment objective,while ProLogis' development sites and expertise, high qualityproperties, strong customer relationships and unique operatingsystem satisfy our strategic objective to be part of creating theleading pan-European real estate platform." ProLogis is a leading global provider of integrateddistribution services, with over 1,575 distribution facilitiesowned and operating throughout North America and Europe. ProLogishas built the industry's first and only global network ofdistribution facilities with the primary objective to buildshareholder value by becoming the leading provider ofdistribution services. The company expects to achieve thisobjective through the ProLogis Operating System(TM), and itscommitment to be "The Global Distribution Solution" by providingexceptional corporate distribution services and facilities tomeet customer expansion and reconfiguration needs globally. As ofJune 30, 1999, ProLogis has over 172.3 million square feet ofdistribution facilities operating or under development in 94global markets. Additional information on this transaction can be found on thecompany's website at www.prologis.com under "SupplementalInformation," or by request at 1-800-820-0181. This news release shall not constitute an offer to sell or thesolicitation of an offer to buy the securities of ProLogisEuropean Properties Fund. The offering related to thosesecurities has been consummated and no further offers or saleswill be made. In addition to historical information, this press releasecontains forward-looking statements under the federal securitieslaws. These statements are based on current expectations,estimates and projections about the industry and markets in whichProLogis operates, management's beliefs and assumptions made bymanagement. Forward-looking statements are not guarantees offuture performance and involve certain risks and uncertaintieswhich are difficult to predict. Actual operating results may beaffected by changes in global, national and local economicconditions, competitive market conditions, changes in financialmarkets or interest rates that could adversely affect ProLogis'ability to meet its financing needs and obligations, weather,obtaining governmental approvals and meeting developmentschedules, and therefore, may differ materially from what isexpressed or forecasted in this press release. ots Original TextService: ProLogis Internet: http://www.newsaktuell.de Contact:Jeffrey H. Schwartz, +011-31-65-323-0176, or Analyst and Media:Melissa Marsden, 303-576-2622, both of ProLogis, or ProLogisInvestor Relations: 800-820-0181 Photo: NewsCom:http://www.newscom.com/cgi-bin/prnh/19990420/PROLOGIS PRN PhotoDesk, 888-776-6555 or 201-369-3467 Web site:http://www.prologis.com

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

PROTEXT