ProLogis European Properties (PEPR) announces plans to float on Euronext Amsterdam

28/08/2006

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO OR IN THE UNITED STATES
NEITHER THIS ANNOUNCEMENT NOR ANY ACCOMPANYING ANNOUNCEMENT IS AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION. THE SECURITIES WHICH WOULD BE ISSUED IN AN INITIAL PUBLIC OFFERING HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE SECURITIES ACT), OR THE SECURITIES ACT OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND ANY SECURITIES ISSUED AS PART OF AN INITIAL PUBLIC OFFERING MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT) WITHOUT REGISTRATION OR AN EXEMPTION THEREFROM (SUBJECT TO CERTAIN CONDITIONS).

[28 August], 2006 – Luxembourg – ProLogis European Properties (PEPR), an externally managed real estate investment fund owning a portfolio of high quality distribution facilities in 11 European countries, today announced it is planning an Initial Public Offering (IPO) of ordinary units by certain selling unitholders on Euronext Amsterdam N.V.’s Eurolist by Euronext.

Deutsche Bank and Morgan Stanley have been appointed joint global coordinators and joint book-runners for the IPO. ABN AMRO Rothschild and JPMorgan have been appointed co-lead managers with Kempen & Co. acting as co-manager. Macquarie Capital Partners is financial adviser to ProLogis, owner of PEPR’s Management Company and a leading global provider of distribution facilities and services.

Further announcements relating to the IPO will be made in due course.

Robert J. Watson, who will be CEO of PEPR upon completion of an IPO, commented: “Over the last 7 years PEPR has acquired and successfully managed a substantial portfolio of high quality industrial assets. PEPR’s investment objective is to generate capital appreciation and a high level of distributable current income for its unitholders. As at 30 June 2006, PEPR’s portfolio of 281 distribution facilities in Europe was valued at approximately €4.2 billion with an overall occupancy rate of 97.3 percent. We are excited about the future of PEPR and the potential to explore an IPO.”

Contacts
Sarah Hamilton or Ed Orlebar
M:Communications
+44 7836 295 291 or +44 7738 724 630
hamilton@mcomgroup.com /orlebar@mcomgroup.com

About PEPR

PEPR was established in 1999 and is an externally managed real estate investment fund organised as a Luxembourg closed-ended fonds commun de placement (FCP) and regulated in Luxembourg by the Commission de Surveillance du Secteur Financier. As at 30 June 2006, PEPR owned a portfolio of 281 distribution facilities, located in 11 European countries, comprising 5.4 million square metres of leasable space. As at 30 June 2006, PEPR’s portfolio had an overall occupancy rate of 97.3% and was independently valued by Jones Lang LaSalle and DTZ Zadelhoff at approximately €4.2 billion (net of purchaser’s costs). PEPR has a diversified customer base with 402 customers (as at 30 June 2006), which include some of the largest and most established users of distribution facilities in Europe.

PEPR’s investment objective is to generate capital appreciation and a high level of distributable current income for its unitholders. PEPR expects to be able to generate stable cash flow based on a combination of historically high occupancy rates, favourable lease terms and innovative debt financing. PEPR aims to structure its investments in a tax-efficient manner, whilst using efficient financing to optimise the portfolio yield and to deliver stable returns to unitholders.

PEPR is managed by ProLogis Management S.à r.l., a Luxembourg-based, wholly owned subsidiary of ProLogis, a U.S. based real estate investment trust that operates a global network of industrial distribution properties and is a leading provider of distribution facilities and distribution services in North America, Europe and Asia, with strengths in property and asset management, investment discipline, global customer relationships, property development and technical and structural innovation. ProLogis entered the European market in 1997 and has established a strong local market presence since that time.

The Management Company believes that PEPR’s portfolio is comprised of high quality, state-of-the-art facilities and that PEPR is well positioned to take advantage of market opportunities offered by current trends in the European distribution logistics market, given the scale of the portfolio. These trends include the re-engineering and optimisation by companies of their supply chains in response to increased integration in the EU, customer demands for flexible space and growth in the emerging economies of Central and Eastern Europe.

Any purchase or any subscription of or any application for securities of PEPR under the offering should only be made on the basis of information contained in the Prospectus to be issued in connection with the offering. The Prospectus will contain certain detailed information about PEPR and its management, as well as financial statements and other financial data.

The statements contained in this announcement that are not historical facts are forward-looking statements and are based on current expectations, estimates and projections about PEPR, the industry in which it operates and the markets in which PEPR’s properties compete. Such statements are based on certain assumptions made by the Management Company and on information provided to the Management Company by third parties, which information may not be reliable. Projected or forecasted results and actual results will differ and such differences may be material. As a result, this information should not be relied upon by the recipient and should not be communicated to third parties as being passed upon by PEPR or its Management Company.

Save as required by law, PEPR expressly undertakes no obligation to publicly update or review any forward-looking statements contained in this announcement, whether as a result of new information, future developments or otherwise. From a UK law perspective, PEPR is an unregulated collective investment scheme whose promotion is restricted by sections 238 and 240 of the Financial Services and Markets Act 2000. This announcement is being communicated in the UK only to persons in the business of disseminating information pursuant to section 20 of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, as amended, and section 47 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. No other persons should act on or rely on this announcement.

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