Prologis European Properties is disposing of a portfolio of seven distribution warehouses in the Netherlands and Germany for gross proceeds of EUR 119.5 mln. PEPR has signed an agreement to sell the properties to Curzon Capital Partners II, a core-plus fund of European investment manager AEW Europe.
Prologis European Properties is disposing of a portfolio of seven distribution warehouses in the Netherlands and Germany for gross proceeds of EUR 119.5 mln. PEPR has signed an agreement to sell the properties to Curzon Capital Partners II, a core-plus fund of European investment manager AEW Europe.
The sale is expected to close in tranches over the next six to eight weeks. The deal reflects a net initial yield in excess of 8%.
The portfolio comprises 229,000 m2 of distribution warehouse space at three locations in The Netherlands (Bergen op Zoom, Haaften and Rotterdam) and four locations in Germany (Neumarkt, Peine, Soest and Straubing). The sale price reflects a discount of 6.4% to December 2008 valuations.
PEPR will use the net proceeds from the sale to reduce outstanding debt, including a portion of the EUR 373.8 mln Commercial Mortgage Backed Security maturing in May 2010.
Simon Nelson, head of asset management, commented: 'We are pleased to have agreed this transaction at a level close to NAV within the current economic and global credit market environment.'
