We've been somewhat below plan in capital deployment, but we expect development volume to pick up in the coming quarters due to lack of supply of Class A facilities, which I'll address in a moment. Interestingly, we're once again seeing opportunities to utilize our platform for value-added conversions. During the quarter, we completed one such transaction in Silicon Valley, generating an economic gain of more than $23 million or 38% higher than the value of the property as an industrial asset.Turning to Private Capital, I'd like use this opportunity to give you an update on our Japan operations as well as our Private Capital initiatives there. I spent last week in Japan, and my time with the team further reinforced my assessment of the quality and scale of opportunities that we have before us in that market. We're having great success leasing our development projects in Japan, often prior to the completion of construction. You recently saw our press release on a million-square-foot development project in Tokyo that was fully leased before we broke ground. We expect to have more news of this nature to share with you in the coming weeks and months.
Prologis' CEO Discusses Q1 2012 Results - Earnings Call Transcript
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