EUROPE - ProLogis European Properties (PEPR) will offer as much as €97.5m of new ordinary units between 29 August and 2 September this year in relation to its 92.6% holding in PEPR.

The offering, which comprises the issue of 15,725,000 new ordinary units, will see the units being offered at €6.20 each, equal to the recent tender offer price and a 10.1% premium to PEPR's IFRS net asset value per ordinary unit as at 30 June.

Net proceeds of the offering will be used to accelerate deleveraging of the PERP business.

Prologis estimates the issue of new units will lead to a decrease in PEPR's pro-forma loan-to-value ratio from 51.1% to 47.8% as of 30 June.

Peter Cassells, chief executive at PEPR said: "Over the last three years, we have taken numerous steps to deleverage the business, including selling assets, issuing preferred equity and retaining distributable cash flow.

"This offering will enable us to further strengthen our balance sheet, in line with our stated objective to return to an investment-grade credit rating.

"Against this backdrop, the management company and the PEPR board have concluded that the issue of new ordinary units is in the best interests of PEPR and all its unit holders."

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