ProLogis European Properties increases pan-European investment
18/08/2008
– Invests €19.5 million
into ProLogis European Properties Fund II –
– New Fund II secured funding demonstrates continued
access to debt capital –
ProLogis European Properties (Euronext: PEPR), Europe’s
largest owner of modern distribution facilities, announced today
that it has invested a further €19.5 million into ProLogis
European Properties Fund II (PEPF II), a private equity fund
established by ProLogis (NYSE: PLD) to acquire assets from
ProLogis’ development pipeline in Europe and assets from
third-parties. This investment, entirely funded from cash in hand,
increases PEPR’s gross investment in PEPF II to €314.7
million and maintains PEPR’s 30% ownership in the fund.
ProLogis has contributed 14 modern distribution facilities into
PEPF II, covering 235,500 square metres in France (1), Germany (2),
Hungary (5) and Poland (6), with third-party appraised values
totalling €164.6 million gross (€159.1 million net),
representing a 6.8% yield on investment. These facilities are two
years old on average, 99.9% occupied by pan-European customers such
as Kuehne + Nagel, Schneider Electric and Wincanton and have 4.1
years to lease expiry or 4.0 years to first lease break on
average.
Of the 14 state-of-the-art facilities, five were developed by
Parkridge, whom ProLogis acquired in 2007, and nine were developed
by ProLogis.
Following this acquisition, PEPF II’s portfolio consists of
107 buildings, covering 2.5 million square metres in 11 European
countries. This brings PEPR’s combined portfolio to 354
buildings and some 7.7 million square metres of space in 12
European countries.
Additionally, PEPF II has recently obtained a five-year secured
term loan for up to €276 million, provided by a four-bank
syndicate led by Hypo Real Estate Bank International AG. The
funds will be used to finance PEPF II properties located in Central
Europe.
Gordon Keiser, chief executive officer, commented “We are
pleased to be able to continue to accretively invest in modern,
well located distribution facilities in our target markets. The
high occupancy levels of these facilities reflect continued
occupier demand across our European markets. Given current
challenging credit market conditions, PEPF II’s ability to
access new debt underlines the strong business relationships
ProLogis and PEPR have with the global banking
community.”
-Ends-
For further information, please contact:
Investor relations
ProLogis European Properties +44 20 7518 8708
Jennifer van der Eem, VP Investor Relations
jvandereem@prologis.com
Media
M:Communications +44 20 7153 1523 or 7153
1549
Ed Orlebar / Charlotte McMullen
orlebar@mcomgroup.com /
mcmullen@mcomgroup.com
About ProLogis European Properties
(PEPR)
ProLogis European Properties, or PEPR, which
listed on Euronext Amsterdam on 22 September 2006, is the largest
pan-European owner of high quality distribution and logistics
facilities. Established in 1999, PEPR is a real estate
investment fund (organised as a Luxembourg closed-ended fonds
commun de placement) externally managed by a subsidiary of ProLogis
(NYSE: PLD), the world’s largest owner, manager and developer
of industrial distribution properties.
As at 30 June 2008, PEPR has a portfolio of 340 buildings, owned both directly and indirectly, covering 7.5 million square metres in 12 European countries, with an open market value estimated at €5.6 billion. The combined portfolio has an occupancy level of 97.9% and an average of 5.0 years to the next lease break or 6.8 years to lease expiry. Of the combined portfolio, PEPR’s directly owned properties comprise 247 buildings, covering 5.2 million square metres in 11 European countries, with an open market value estimated at €3.9 billion.
Six Month Update
2008
