Prologis is merging a €571m portfolio co-owned by Allianz Real Estate with its pan-European core, open-ended fund.
The logistics specialist is consolidating Prologis Europe Logistics Venture 1 (ELV1), a joint venture majority-owned by German insurer Allianz, with Prologis Targeted Europe Logistics Fund (PTELF).
Under the arrangement, Prologis sold a logistics asset to ELV1 and then sold its minority (15%) stake in ELV1 to Allianz.
The enlarged ELV1 portfolio, which includes assets in Germany, France and the Netherlands, was then merged with PTELF.
As a result, Allianz becomes the biggest investor in PTELF. Prologis will receive net cash proceeds of around €183m.
“Combining PTELF and ELV1 benefits all parties involved,” said Gary Anderson, chief executive of Prologis Europe and Asia.
“Allianz meets its investment objective by deploying more capital in European logistics real estate, existing investors in PTELF benefit from improved scale, a stronger balance sheet and greater liquidity, and Prologis further streamlines its strategic capital business.”
With the addition of Allianz, the PLELF vehicle will have around 40 investors, including Prologis.
François Trausch, chief executive of Allianz Real Estate, said: “As the logistics sector is a particular area of focus in our portfolio construct, Allianz is looking forward to the strengthening of its relationship with Prologis by becoming the largest investor in PTELF and supporting the future growth of the fund.”
By contributing ELV1, Allianz, said Trausch, will gain exposure to a “larger, more liquid portfolio with greater diversity, at a time when the industry is also consolidating”.
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