ProLogis European Properties (Euronext: PEPR), Europe's largest owner of modern distribution facilities, has confirmed it has closed on the sale of five distribution facilities in the UK, generating net proceeds of £64.4 mln.
ProLogis European Properties (Euronext: PEPR), Europe's largest owner of modern distribution facilities, has confirmed it has closed on the sale of five distribution facilities in the UK, generating net proceeds of £64.4 mln.
The purchase was carried out by an affiliate of Harbert European Real Estate Fund II, L.P. and Harbert European Real Estate Fund II (Parallel), L.P.
The transaction was reported in PropertyDay on Wednesday.
PEPR said it continues to own 39 distribution warehouses in the UK, which are leased to a variety of global customers.
In addition, PEPR said it had received EUR 92.2 mln from the sale of the portfolio of distribution warehouses in the Netherlands and Germany to AEW Europe, as announced 12 May 2009. Proceeds from the remaining tranche of the AEW sale are expected early in the third quarter.
Simon Nelson, head of asset management, said: 'This latest sale demonstrates the continued momentum of our current deleveraging strategy and our ability to execute transactions successfully in what remains a relatively slow market.
He added: ‘The sale price is in line with current valuations and the disposal of these standalone assets is consistent with PEPR’s long-term business plans for its UK portfolio. The proceeds from both sales will be used to reduce outstanding debt.'
