Item 1.01. Entry into a Material Definitive Agreement.
On February 9, 2009, ProLogis entered into a supplemental agreement with an affiliate of GIC Real Estate ("GIC RE"), the real estate investment company of the Government of Singapore Investment Corporation, which amended the previously announced agreement pursuant to which affiliates of GIC RE agreed to acquire ProLogis's operations in China and property fund interests in Japan.
The supplemental agreement was entered into in connection with the closing of the transaction and provides that funding of the $1.3 billion aggregate purchase price will occur in two phases; $500 million was received by ProLogis upon closing and the remaining $800 million will be funded upon completion of year-end audits of certain entities, which the company expects to provide as soon as possible, but no later than early in the second quarter. In the event that the audits reflect a material disparity from the unaudited year-end information previously furnished to GIC RE, GIC RE will have the option to unwind the entire transaction at the expense of ProLogis. Item 2.06. Material Impairments.
In accordance with Statement of Financial Accounting Standards ("SFAS") 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS 144"), ProLogis has classified all of the assets and liabilities associated with its China operations as Assets and Liabilities Held for Sale in its Consolidated Balance Sheet as of December 31, 2008. In connection with the consummation of the closing of the sale of ProLogis's operations in China, ProLogis recognized an impairment of $198.2 million that is included in Discontinued Operations in the fourth quarter of 2008. ProLogis recognized such impairment based on the carrying values of these assets and liabilities, as compared with the estimated sales proceeds less costs to sell.

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