US distribution specialist Prologis will continue to operate Amsterdam-listed fund Prologis European Properties (PEPR) as a listed entity as it did not achieve a 95% holding through its mandatory tender offer launched in April, PEPR's Chief Executive Peter Cassells said during the Annual General Meeting held on Wednesday.
US distribution specialist Prologis will continue to operate Amsterdam-listed fund Prologis European Properties (PEPR) as a listed entity as it did not achieve a 95% holding through its mandatory tender offer launched in April, PEPR's Chief Executive Peter Cassells said during the Annual General Meeting held on Wednesday.
No operational changes in management will be made, he added.
Prologis held 89% of the ordinary units and voting rights in PEPR at the close of a mandatory tender offer on 18 May. New York-listed Prologis launched the takeover offer in April this year to forestall moves led by Dutch pension group APG, then the second largest shareholder in PEPR, and Australia's Goodman Group to wrestle control of the European fund.
APG, GIC and other shareholders including the PEPR management team, ultimately accepted an improved offer made by Prologis of EUR 6.20 per unit.
Prologis established PEPR as an externally managed real estate investment fund in 1999 and it was subsequently listed in Amsterdam. The fund now owns a portfolio of 232 distribution properties, valued at EUR 2.8 bn, in 11 countries.
Cassells said that the company's main operational priority for 2011 is 'to continue to drive cash flow from the portfolio through proactive asset management, exemplary customer service and sustained high levels of leasing activity'. 'In addition,' he added, 'where excess supply of space has been absorbed, we will look to push for higher rents.'
