26/07/2007
26 July 2007 – Luxembourg –
ProLogis European Properties (Euronext: PEPR), Europe’s
largest owner of modern distribution facilities, today announced it
has signed a purchase agreement with Foncière Europe
Logistique, a subsidiary of Foncière des Régions, one
of Europe’s leading property investment companies, for the
sale of a portfolio of logistics/light industrial assets in France
for €425 million. The net proceeds from the sale will be used
to pay down debt and provide capital for reinvestment. The sale is
expected to complete by 31 July 2007.
The portfolio represents some 556,000 square metres of buildings at
three locations in the Paris region (ProLogis Parks Garonor, Senart
and Cergy Pontoise) and one at Vitrolles, outside Marseille. The
sale reflects a significant premium to current net book value for
these assets. ProLogis European Properties acquired the majority of
the portfolio from ProLogis in 2000, adding to the portfolio
through the addition of newly developed ProLogis assets and third
party acquisitions. The portfolio was marketed for sale as the
average size of the buildings is not consistent with the remainder
of the PEPR portfolio in France and elsewhere in Europe.
Robert Watson, chief executive officer of PEPR, commented:
“We are pleased to have owned the bulk of these assets since
our formative years. During that time, we have been successful in
creating value through refurbishment and subsequent letting
activity. The sale of these properties will bring our French
platform in line with the rest of our portfolio of large, modern
distribution facilities. With over 1.5 million square metres of
space, France remains a key market for PEPR as we continue to see
rising demand for modern logistics space, particularly in the Paris
region. We believe this transaction will be accretive to earnings
and create maximum value for unitholders.”
Following the close of this transaction, PEPR’s French
platform will consist of 60 distribution facilities, covering 1.5
million square metres, and the average size of its French assets
will increase from 19,700 square metres to 25,900 square
metres.
CBRE, M3 Capital Partners and Morgan Stanley advised ProLogis
European Properties.
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 leading pan-European owner
of high quality logistics facilities. PEPR's portfolio of
real estate is located in 25 submarkets within 11 European
countries. 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, the
largest U.S. based real estate investment trust that operates a
global network of industrial distribution properties.
As at the end of March 2007, PEPR owned 292 distribution facilities
covering approximately 5.7 million square metres of leasable space.
PEPR’s customers are large third party logistic service
providers as well as a broad range of companies in the retail and
manufacturing sectors.