Prologis European Properties (PEPR) quoted on the Euronext stock exchange said that it would purchase a portfolio of properties for a total of EUR 215.4 mln from its founder, Denver-based Prologis. The properties acquired consist of 15 newly constructed and fully-leased distribution facilities in Belgium, the Czech Republic, France, Germany, Poland and Spain with a total surface of 305,000 m[sup]2[/sup].

Prologis European Properties (PEPR) quoted on the Euronext stock exchange said that it would purchase a portfolio of properties for a total of EUR 215.4 mln from its founder, Denver-based Prologis. The properties acquired consist of 15 newly constructed and fully-leased distribution facilities in Belgium, the Czech Republic, France, Germany, Poland and Spain with a total surface of 305,000 m2.

'This portfolio substantially increases our critical mass in several target markets,' said Ralf Wessel, head of asset management at PEPR. 'We are also pleased to extend our relationship with seven of our existing customers and welcome 16 new customers to the portfolio.' The acquisition will be funded through a combination of cash and newly issued shares and will reflect a yield of 6.8%.

PEPR was established in 1999. It listed on Euronext last year in the largest initial public offering in the European property sector since Canary Wharf went public in 1999. US company ProLogis retained a 24% stake in PEPR after the IPO. At end-2006, PEPR owned 277 distribution facilities covering 5.4 million m2 of leasable space. Its customers are large third-party logistic service providers as well as companies in the retail and manufacturing sectors. Unlike ProLogis, it does not engage in development activities.