Luxembourg - 25 September 2008 - 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."
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