Security Capital Industrial Trust Announces Successful Completion of Common Share Offerings Totaling $210.7 Million.

DENVER--(BUSINESS WIRE)--Oct. 1, 1996--Security Capital Industrial Trust (SCI) (New York Stock Exchange Symbol: SCN) announced today the successful completion of an oversubscribed rights offering, raising a total of $175.6 million from the sale of 10,181,709 common shares at a price of $17.25 per share. In order to satisfy the strong demand for this offering, SCI sold an additional 2,036,342 shares at $17.25 per share from its shelf registration statement, which raised an additional $35.1 million. As a result of these offerings, SCI will have a total of 93,671,713 common shares outstanding.

The base rights offering of 6,787,806 common shares was oversubscribed by existing SCI shareholders, and the overallotment option was fully exercised. Through the overallotment and the follow-on offering from its shelf registration statement, SCI added 34 new institutional investors to its shareholder base. SCI Co-Chairman and Chief Operating Officer K. Dane Brooksher said, "One of our objectives for the rights offering was to broaden our shareholder base, and we are extremely pleased with the outcome."

Security Capital Group Incorporated (Security Capital), SCI's principal shareholder, exercised its pro rata share of rights and purchased additional rights in the open market. Due to the extremely strong demand for the rights offering by existing and prospective shareholders, Security Capital elected not to participate in the overallotment option and did not purchase additional shares in the follow-on offering. As a result of these offerings, Security Capital's percentage ownership of SCI decreased from 48.3 percent to 46.0 percent. Security Capital may purchase additional SCI common shares from time to time in open market or privately negotiated transactions to offset the effect of these offerings on Security Capital's ownership of SCI.

The proceeds of the offerings will be used to repay borrowings under SCI's $350 million unsecured revolving line of bank credit and to take advantage of attractive investment opportunities in SCI's target markets. Thomas G. Wattles, Co-Chairman and Chief Investment Officer, said SCI's Market Officer Group continues to identify underleased and undermanaged investment opportunities at the local level. As of Aug. 31, 1996, SCI had 6.7 million square feet of existing distribution space, representing a total expected investment of $207.9 million, under letters of intent or contingent contracts, subject to final due diligence, or in serious negotiation.

Strong market conditions and the SCI National Operating System(TM) continue to create demand for new space in SCI's master-planned distribution parks and build-to-suit facilities for corporate customers. As of Aug. 31, 1996, SCI had 7.5 million square feet under development in 32 master-planned distribution parks, bringing the number of master-planned parks to 54 with a total of 21.2 million square feet of space completed or under development. Year to date through Sept. 30, 1996, SCI had finalized build-to-suit leases representing a total expected investment of $83.5 million. Leases signed during the third quarter include new facilities for Circuit City in San Antonio, Duracell in Indianapolis and USG Corporation in Miami.

SCI is the largest publicly held owner and operator of distribution properties in the United States. SCI's primary objective is to achieve long-term, sustainable growth in cash flow. SCI expects to achieve this objective through the SCI National Operating System(TM) which is committed to creating shareholder value by providing exceptional customer service. SCI's investment strategy is to acquire generic distribution facilities and develop full-service, master-planned distribution parks in metropolitan areas that demonstrate strong demographic growth and excellent industrial real estate fundamentals. As of Aug. 31, 1996, SCI had distribution properties operating or under development in 36 target markets, totaling 82.6 million square feet.

CONTACT: Bradford W. Howe, 800/820-0181, or Gerard de Gunzburg,

212/838-9292, both of Security Capital Industrial Trust