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Name and title: Edward S. Nekritz, general counsel and secretary Age: 41 ‘Critical link’: ProLogis is a huge warehouse company wrapped around a baker’s dozen of private-equity funds favored by major financial institutions, life insurance companies, pension funds and similarly sophisticated investors. At the core of ProLogis is nearly 380 million square feet of storage space located at 2,300 properties in 21 countries in Asia, Europe and North America. The composite company is one part a hardly flashy warehouse empire, and another part an investment opportunity open only to the largest investors in the world. “This is really a private-equity business that happens to have real estate as its component,” Nekritz said. “We have a private-equity model we believe is unique.” ProLogis has built 13 private real estate investment trusts (REITs) in which it maintains a minority interest in partnership with major investors. The asset in each trust consists of modern warehouses in strategic locations worldwide, all under lease to the world’s 500 largest users of industrial real estate. The trusts offer lucrative, yet secure, returns to institutional investors. “We have real estate portfolios around the world that interest institutional investors,” Nekritz said. “We are working with sophisticated private investors in real estate who become our partners. We essentially take development risk on the transactions, we lease out the buildings and then we contribute or sell [the buildings] to the funds once they are completed.” ProLogis invested approximately $3 billion in 2006 in building or buying warehouse space around the world. “Our business is the ownership and management of the warehouses, so we are a critical link in the supply chain,” Nekritz said. “Our people on the ground are running their businesses locally. They are always looking for the next piece of land, always looking at the existing portfolio of buildings in their market. We have someone in the field serving as the primary contact for the companies leasing space. That helps us understand their needs around the world, so we can leverage our local resources to find them space or the land for their next build-to-suit.” ProLogis is a lean operation, with holdings valued at $26 billion. The warehouses are managed and operated by a worldwide staff of 1,300. Route to present position: Nekritz earned his bachelor’s degree from Harvard College in 1987 and his law degree from the University of Chicago Law School in 1990. Following graduation, he joined Chicago-based Mayer, Brown, Rowe & Maw � then Mayer, Brown & Platt � and practiced real estate and corporate law until moving to ProLogis as a senior vice president in 1995. Legal team: Nekritz contains his legal overhead through an internally developed computer program called ProLease that allows the sales staff to draft leases in the course of a transaction. The leases nearly always please the customer and the ProLogis legal office, he said. “We have 4,000 customers, so we do a lot of leasing, a lot of renewals, a lot of acquisitions and dispositions. Speed to market is very important,” Nekritz said. “ProLease gives us a strategic advantage when dealing with customers that need us in a number of locations. Our people in the field can generate a draft lease while completing transactions with the customers. They understand the ProLogis philosophy of leasing, what risks are appropriate for the company, what risks aren’t and how to get deals across the goal line. If we have a lease that we’ve negotiated with Federal Express in Southern California and they want space with us in Baltimore, Md., we’ve really pre-negotiated the forms. The customer gets into the space faster or gets to construction on space faster. It helps everybody.” The in-house legal team of 11 is widely dispersed, with five attorneys in North America, three in Europe and three in Asia handling acquisitions and dispositions, contributions to the REITs, financings and leases. Outside counsel: In North America, ProLogis brings in Mayer Brown for additional expertise on corporate, mergers and acquisitions, tax, U.S. Securities and Exchange Commission advice, more sophisticated transactions and REIT issues. Linklaters of London assists with transactions in China and throughout Europe. “What we do here in legal and corporate is overlay the ProLogis philosophy of how we treat our customers, how we do the business and how we structure the business, to provide flexibility for the private-equity model,” Nekritz said. “We’ve expanded worldwide in a manner that is cautious and extremely entrepreneurial. The investor gets a very solid, low-risk return on the asset.” Daily duties: Nekritz sits on the five-member corporate executive committee. “My job is to help set the strategic vision and determine where we are today, where we want to go in five years, do we have the right resources throughout the company. A lot of that is setting the tone of the company,” he said. “I would say I am 75 to 80% business, 20 to 25% legal. There is very little litigation and very little of the employee issues that often take up a lot of the time for a number of general counsels. It allows me to spend a lot of my time structuring corporate transactions, working on our next entr�e into a new market, working with our advisers on the right way to empower our people in those countries to run the business.” Nekritz reports to Chief Executive Officer Jeffrey H. Schwartz. Personal: Nekritz and his wife, Wendy, a radiation oncologist, have two children: Jessica, 8, and Matthew, 5. “I play as much basketball as I can and coach my kids’ teams,” Nekritz said. He and his siblings maintain the Felicia Beth Nekritz Memorial Fund in memory of their sister, who died of cancer in 1998. The fund, with donations from family and friends, has purchased specialized chairs for the comfort of people undergoing chemotherapy at the Ohio State University Comprehensive Cancer Center, where Beth was treated. The fund also has purchased chairs suitable for parents to sleep in while visiting their children undergoing cancer treatment at the Children’s Memorial Hospital in Chicago. Last book and movie: Conspiracy of Fools, by Kurt Eichenwald, and The Queen.

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