Logistics real estate: ProLogis leases China-based space to Jinji Total Logistics

Staff -- Logistics Management, 3/26/2008

TIANJIN, China—ProLogis, a global owner, manager, and developer of distribution facilities, said today that it has pre-leased 186,000 square feet of distribution space near Beijing to Jinji Total Logistics, a third-party logistics (3PL) company and services provider for China-based technology giant Samsung.

ProLogis said in a statement that the lease with Jinji is for space in a new 437,000 square foot facility on ProLogis Park Xiqing in Tianjin. ProLogis Park Xiqing is ProLogis’ third distribution park in Tianjin. ProLogis said the site is located less than 15 kilometers from five major expressways near the Tianjin International Airport, and is 30 kilometers from the Tianjin Container Port, reporting throughput of 5.95 million TEUs in 2006

It added that Jinji will run the facility as a domestic distribution center for Samsung, which has established one of its largest overseas manufacturing bases less than 2 kilometers from the new park.

Samsung is a multi-continent customer of ProLogis, leasing more than 1.2 million square feet at in China and the United States.

Construction of the building is scheduled for completion in early 2009, according to ProLogis.

“Tianjin is a major economic and industrial center in northern China,” said Ming Mei, president for ProLogis in China, in a statement. “Its proximity to the Tianjin Container Port, China’s fifth largest container port by volume, and large local population has drawn the attention of leading logistics companies and customers with local and regional warehousing requirements. Demand for high-quality space continues to rise, and, in consideration of the park’s strategic location and ProLogis’ reputation for developing modern distribution facilities, we anticipate continued demand from the region’s top domestic and multinational customers.”