15/03/2007
Luxembourg – 15 March 2007 – ProLogis European Properties (Euronext: PEPR), a leading pan- European owner of modern warehouse distribution facilities, announced today that its Board has approved the acquisition of a portfolio of 15 properties from ProLogis (NYSE: PLD), for €215.4 million and yielding 6.8%.
The acquisition of the portfolio will be immediately accretive. ProLogis European Properties will fund the acquisition through a combination of cash from existing credit facilities and the issuance of new units to ProLogis.
The portfolio comprises 15 newly constructed, fully-leased distribution facilities, with a combined floorspace of over 305,000m2. The properties are located in ProLogis European Properties’ target markets across six countries in Europe - Belgium, Czech Republic, France, Germany, Poland and Spain. Eight of the assets are within existing ProLogis Parks owned by PEPR and will compliment current assets. The average lease length to expiry of the portfolio is 7.7 years. It is anticipated that the acquisition of all but one of the properties will complete before the end of the quarter and the remaining asset within the second quarter.
Commenting on the announcement, Robert Watson, chief executive officer of ProLogis European Properties, said: "we are delighted to be acquiring 15 state-of-the-art distribution centres and are pleased to be able to execute this part of our business plan six months ahead of target."
Ralf Wessel, head of asset management, added: "this portfolio substantially increases our critical mass in several target markets. We are also pleased to extend our relationship with seven of our existing customers and welcome 16 new customers to the portfolio."
For further information, please contact:
Investor relations
ProLogis European Properties +44 207 518 8708
Jennifer van der Eem, VP Investor Relations
jvandereem@prologis.com
Media
M:Communications +44 20 7153 1523 or 7153 1538
Ed Orlebar / Sarah Hamilton
orlebar@mcomgroup.com /
hamilton@mcomgroup.com
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