25/09/2008
25 September 2008 – Luxembourg
– ProLogis European Properties (Euronext: PEPR),
Europe’s largest owner of modern distribution facilities,
announced today that it has invested a further €33.0 million
into ProLogis European Properties Fund II (PEPF II), a private
equity fund established by ProLogis (NYSE: PLD) to acquire assets
from both ProLogis’ development pipeline in Europe and from
third-parties. This investment, entirely funded from cash in hand,
increases PEPR’s gross investment in PEPF II to €347.7
million and maintains PEPR’s 30% ownership in the fund.
PEPF II acquired 11 modern distribution facilities, covering
313,000 square metres in France (4), Germany (2), Italy (1), Poland
(1) and the UK (3), with values totalling €247.7 million gross
(€236.7 million net), representing a 7.3% yield on investment.
Four buildings were acquired from third-parties, in France (2),
Italy (1) and the UK (1), at yields in line with the independent
appraisal values on the seven assets contributed from
ProLogis’ development pipeline. The facilities are 2 years
old on average, 100% leased by industry leading customers such as
Kuehne & Nagel, Schenker and Terex and have 9.6 years to lease
expiry or 6.4 years to first lease break on average.
Following this acquisition, PEPF II’s portfolio consists of
118 buildings, covering 2.8 million square metres in 11 European
countries. This brings PEPR’s combined portfolio to 364
buildings and some 8.0 million square metres of space in 12
European countries.
Gordon Keiser, chief executive officer, commented “We are
pleased to be able to continue to grow our combined platform across
Europe and to strengthen our industry leading occupancy. Eight of
the 11 buildings, including two third-party assets, are adjacent to
existing PEPR or PEPF II assets or are located within existing
ProLogis parks, increasing critical mass in our markets and
expanding relationships with our core customers.”
-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 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.