ProLogis European Properties executes growth plan with a further
¤28.2 million investment into ProLogis European Properties Fund II
Luxembourg - 29 May 2008 - ProLogis European Properties (Euronext:
PEPR), Europe's largest owner of modern distribution facilities,
announced today that it has invested a further ¤28.2 million into
ProLogis European Properties Fund II (PEPF II). PEPF II is a private
equity fund established by ProLogis (NYSE: PLD), PEPR's external
manager, in August 2007 to acquire assets from ProLogis' development
pipeline in Europe. This investment, entirely funded from existing
credit facilities, increases PEPR's gross investment in PEPF II to
¤253.2 million of its anticipated overall ¤900 million investment and
maintains PEPR's ownership at 30%.
ProLogis has contributed 13 modern distribution facilities into PEPF
II, covering just over 263,000 square metres in six target European
countries, with third-party appraised values totalling ¤174.2 million
gross (¤167.5 million net), representing a 6.9% yield on the
investment. These facilities are 1.5 years old on average, 98.9%
occupied by global customers such as Wincanton, Fiege and DHL and
have 6.8 years to lease expiry or 5.7 years to first lease break on
average. Four properties are within ProLogis Parks owned by PEPR or
PEPF II, complementing existing assets and increasing critical mass
in several target markets.
Following this acquisition, PEPF II's portfolio consists of 83
buildings, covering 1.9 million square metres in ten European
countries and valued at some ¤1.5 billion. This brings PEPR's
combined portfolio to 330 buildings and some 7.2 million square
metres of space in 12 European countries, a 15% increase in
distribution space since end December 2007.
On 22 May 2008, ProLogis announced that it had successfully
established a ¤1 billion senior, unsecured credit facility to finance
PEPF II's acquisition of recently developed properties from ProLogis.
The margin on the initial drawdown of ¤791 million is 82 basis points
above the relevant Libor index.
Robert Watson, chief executive officer, commented: "We are delighted
with the progress we are making on our investment into PEPF II and
our ability to deliver on our objectives as set out at the time of
the IPO. Given the challenging market conditions in Europe, PEPF II's
capacity to strategically access debt through the new ¤1 billion
senior, unsecured credit facility underlines the confidence of the
global banking community in the ability of PEPF II and PEPR to
benefit from future growth opportunities across Europe."
Portfolio overview:
Number of Open market Yield on open market
facilities Leasable value [1] value [2]
000m2 ¤ million %
Spain 1 39.5 27.1 7.9%[3]
Southern 1 39.5 27.1 7.9%
Germany 4 79.0 44.3 6.7%
The Netherlands 1 11.3 7.6 6.8%
Sweden 1 17.4 14.5 6.7%
Northern 6 107.7 66.4 6.7%
Hungary 1 16.1 10.7 6.9%
Poland 5 100.4 63.2 6.7%
Central 6 116.5 73.9 6.7%
Total 13 263.7 167.5 6.9%
-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 31 March 2008, PEPR has a portfolio of 317 buildings, owned
both directly and indirectly, covering 6.9 million square metres in
12 European countries, with an open market value estimated at ¤5.4
billion. The combined portfolio has an occupancy level of 98.2% and
an average of 5.1 years to the next lease break or 6.9 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 ¤4.1
billion. PEPR and PEPF II's customers are large third party logistic
service providers as well as a broad range of companies in the retail
and manufacturing sectors.
[1] In accordance with IFRS fair value accounting, open market value
is reported net i.e. after deduction of purchasers' costs.
[2] Annualised rental income expressed as a percentage of open market
value
[3] This represents a 6.3% yield on the underlying real estate with
additional return from financing - above standard - improvement
