Luxembourg - 17 September 2009 - ProLogis European Properties (Euronext: PEPR), one of Europe's largest owners of modern distribution facilities, is pleased to announce that it has obtained an amendment to its €900 million senior unsecured credit facility.

The amendment, among other things, ensures that PEPR can continue to use the senior unsecured credit facility following the proposed conversion of its legal structure from a fonds commun de placement ('FCP') into a société d'investissement à capital fixe ('SICAF').

In addition, PEPR's consolidated tangible net worth covenant will be reduced to €900 million from €1.1 billion currently. This provides PEPR with additional flexibility to withstand further deterioration in the value of its portfolio. The amendment also removes the restriction on PEPR to make dividend payments, provided these payments do not exceed 50% of distributable cash flow.

The amendment of the consolidated tangible net worth covenant and the removal of the restriction on dividend payments will become effective following PEPR's conversion of its legal structure to a SICAF and the conclusion of a minimum equity raise of €200 million.

These amendments follow a number of actions already completed this year by management to improve liquidity and reduce balance sheet risk, including:

The extension of a secured loan agreement with Deutsche Pfandbriefbank AG, from original expiry of March 2010 to March 2013
A new agreement with Eurohypo AG for a £86.1 million (€101.3 million) secured loan maturing in 2013
Repayment of all amounts borrowed under the revolving portion of the €900 million credit facility and partial repayment of commercial mortgage backed securities (CMBS) IV notes (€98.6 million)
The disposal of a portfolio of nine distribution facilities in The Netherlands and Germany for €119.5 million
The disposal of five distribution facilities in the UK, generating £64.4 million

Commenting on the amendment, Peter Cassells, chief executive officer of PEPR, said: "This is a significant step in increasing our financial flexibility and providing us with the necessary headroom with which to operate. We thank our lenders for their support in this regard, and in relation to our intention to convert PEPR into a SICAF."