First Industrial Forms New $285 Million Canadian Joint Venture To Invest California State Teachers' Retirement System



    
    New Investment Capacity Serves Growing Distribution Needs in Canada from
    Rising International Trade
    

    CHICAGO, Jan. 8 /CNW/ -- First Industrial Realty Trust, Inc. (NYSE:   FR),
a leading provider of industrial real estate supply chain solutions, today
announced that it has formed a new joint venture, FirstCal Industrial Canada,
LLC, with the California State Teachers' Retirement System (CalSTRS), the
second-largest public pension fund in the United States with a $175 billion
portfolio.
    
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20040106/FRLOGO)
    
    The new venture will invest in a wide range of industrial real estate
that is projected to benefit from several growth trends: rising international
trade, growing demand among customers to reconfigure their supply chains, and
increasing use of intermodal facilities to transport goods.  Investments will
be made in strategically-located land parcels for build-to-suit and
speculative development, as well as acquisitions of industrial facilities to
be redeveloped, repositioned and leased.  CB Richard Ellis Investors is the
advisor to CalSTRS on this venture.
    "This new joint venture capital will support further investments in
Canada through our recently-opened offices serving the growing Toronto and
Calgary/Edmonton markets," said Mike Brennan, president and chief executive
officer of First Industrial.  "These markets feature major intermodal
transportation networks, which offer First Industrial many opportunities to
help customers improve their supply chains."
    The Toronto industrial market is the fourth largest in North America and
is a critical distribution hub for Ontario, Northwestern Quebec and the
Northeastern United States.  Calgary is the major western distribution hub for
Canada, and Edmonton serves as a key distribution and service center for major
natural resource industries.
    "The Toronto, Calgary, and Edmonton markets offer multiple investment
opportunities ranging from new development to acquisitions due to strong
demand and limited vacancies in these markets," said Johannson Yap, First
Industrial's chief investment officer.
    The total investment capacity of the new venture is approximately $285
million.  The expected capitalization is 35 percent equity and 65 percent
debt. CalSTRS has agreed to initially contribute equity up to $90 million and
First Industrial has agreed to initially contribute up to $10 million,
representing a 90 percent and 10 percent equity interest, respectively.  Since
the joint venture recycles capital back into the venture as properties are
sold, the $285 million investment capacity is a "point-in-time" limit and
total investments can exceed $285 million over the life of the venture. Credit
facilities in multiple currencies have been arranged with WestLB AG, New York
branch, the lead lender.
    "This new joint venture provides us with substantial capacity to grow our
business and serve our customers in Toronto and Western Canada," said Mike
Havala, First Industrial's chief financial officer.
    As venture manager, First Industrial will receive fees for development,
property management, leasing, dispositions and portfolio administration.  In
addition, First Industrial has the opportunity to earn performance-based
incentives. The initial term of the venture is 10 years.
    First Industrial recently announced the opening of its Toronto office and
the hiring of Dave Carreiro, regional director, and the opening of its Calgary
and Edmonton markets and the hiring of Blair Sinclair, regional director.
Prior to this new joint venture, First Industrial had completed sale leaseback
investments in Canada with Rockwell Automation and Volkswagen of Canada.
    First Industrial Realty Trust, Inc. (NYSE:   FR) provides industrial real
estate solutions for every stage of a customer's supply chain, no matter how
large or complex.  Across more than 30 markets in the United States, Canada,
The Netherlands and Belgium, our local market experts buy, (re)develop, lease,
manage and sell industrial properties, including all of the major facility
types -- R&D/flex, light industrial, manufacturing, and regional and bulk
distribution centers.  We continue to receive leading customer service scores
from Kingsley Associates, an independent research firm, and in total, we own,
manage and have under development more than 100 million square feet of
industrial space.  For more information, please visit us at
http://www.firstindustrial.com.
    This press release contains forward-looking information about the
Company. A number of factors could cause the Company's actual results to
differ materially from those anticipated, including changes in: national,
international, regional and local economic conditions generally and real
estate markets specifically, legislation/regulation (including changes to laws
governing the taxation of real estate investment trusts), availability of
financing, interest rate levels, competition, supply and demand for industrial
properties in the Company's current and proposed market areas, potential
environmental liabilities, slippage in development or lease-up schedules,
tenant credit risks, higher-than-expected costs, changes in general accounting
principles, policies and guidelines applicable to real estate investment
trusts, and risks related to doing business internationally (including foreign
currency exchange risks).  For further information on these and other factors
that could impact the Company and the statements contained herein, reference
should be made to the Company's filings with the Securities and Exchange
Commission.




For further information:

For further information: Sean O'Neill, SVP, Investor Relations and 
Corporate Communications, +1-312-344-4401, or Art Harmon, Director, Investor 
Relations and Corporate Communications, +1-312-344-4320, both of First 
Industrial Realty Trust, Inc. Web Site: http://www.firstindustrial.com

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