The facility will be built at the 112 acre ProLogis Park Pineham in the Midlands, the UK's primary distribution hub. Construction is scheduled for completion in the second half of 2007.

Under a multi-year lease agreement, the facility will serve as a regional distribution centre, serving fifty Sainsbury's stores throughout the central part of the country

Sainsbury's currently leases 112,000 sq.ft from ProLogis outside London, and a 256,000 sq.ft facility from ProLogis in the east Midlands.

According to Ken Hall, managing director of global development for ProLogis in Europe, when completed, this building will be among the most environmentally advanced distribution facilities in the world.

ProLogis Park Pineham is located immediately adjacent to junction 15A off the M1 motorway, providing easy access to the UK's national motorway network and east coast ports. The site can accommodate more than 1.62 million sq.ft of distribution space at full buildout.

As at end-2006, ProLogis had approximately 17 million sq.ft of industrial space owned, managed and under development in the UK