ProLogis European Properties issues first unsecured bond for €500 million

15/10/2007

15 October 2007 – Luxembourg – ProLogis European Properties (Euronext: PEPR), Europe’s largest owner of modern distribution facilities, announced today that it has raised €500 million by means of a new unsecured bond issue by ProLogis International Funding S.A., a fully owned subsidiary of PEPR, in the Euro bond market. The €500 million issue, due 2014 and guaranteed by PEPR, represents its first issuance of unsecured notes.

The joint lead managers and bookrunners of the issue are ABN AMRO and Banc of America Securities Ltd. The notes are expected to be rated A3 by Moody's. Interest will be payable annually in arrear on 23 October each year at the coupon rate of 5.875 per cent, with the first such payment due on 23 October 2008. The notes will be redeemed at par on 23 October 2014, unless redeemed prior thereto in accordance with their terms. The notes were priced to yield a margin of 159.4 basis points over the DBR 4.250% July 2014.

Applications have been made to the Commission de Surveillance du Secteur Financier, Luxembourg for the notes to be admitted to the official list of the Luxembourg Stock Exchange with a further application to the Luxembourg Stock Exchange for the notes to be admitted to trading. It is expected that official dealings in the notes will commence on the Luxembourg Stock Exchange on 23 October 2007.

Net proceeds of the issue will be used to reduce debt outstanding under PEPR’s bridge facility, due June 2008, and its revolving credit facility, due December 2007.

Peter Cassells, chief financial officer, said: “This issue provides an important source of finance and at two times oversubscribed marks a successful debut in the unsecured bond markets for us. Our investment grade credit rating by Moody’s enables us to utilise a fuller range of credit instruments and we have taken the opportunity to raise long term unsecured finance at what we believe is an attractive rate in a new debt market for PEPR, despite a difficult credit environment.”

This news release does not constitute an offer to sell or the solicitation of an offer to buy the notes.

-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, the largest U.S. based real estate investment trust that operates a global network of industrial distribution properties.

As at the end of June 2007, PEPR owned 293 distribution facilities, covering approximately 5.8 million square metres of leasable space, across 25 submarkets within 11 European countries. PEPR’s customers are large third party logistic service providers as well as a broad range of companies in the retail and manufacturing sectors

This news release is not directed at persons in the United States or U.S. persons within the meaning of Regulation S under the U.S. Securities Act of 1933 (“U.S. Persons”). This news release does not constitute an offer for sale in the United States or to U.S. Persons. The securities described herein have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States or to U.S. Persons.

This news release is not an invitation nor is it intended to be an inducement to engage in investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom (the “FSMA”). To the extent that this news release does constitute an inducement to engage in any investment activity included within this news release, it is directed only at (i) persons who are outside the United Kingdom, (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) of the United Kingdom (the “Financial Promotion Order”); (iii) persons who fall within Articles 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Financial Promotion Order; and (iv) any other persons to whom this news release for the purposes of Section 21 of FSMA can otherwise lawfully be made (all such persons together being referred to as “relevant persons”), and must not be acted on or relied upon by persons other than relevant persons. Any invitation or inducement to engage in any investment activity included within this news release is available only to relevant persons and will be engaged in only with relevant persons. Anyone other than a relevant person must not rely on this news release.

This news release is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC (the “Directive”). A prospectus will be prepared and made available to the public in accordance with the Directive.

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