ProLogis adds EUR 28m to European fund

Euronext-listed logistics property investor ProLogis European Properties said on Thursday it had invested a further EUR 28.2 mln in its ProLogis European Properties Fund II (PEPF II). PEPF II is a private equity fund set up to acquire assets from parent company ProLogis’ development pipeline in Europe. This investment, entirely funded from existing credit facilities, increases PEPR’s gross investment in PEPF II to EUR 253.2mln of a targeted EUR 900mln in investment, the company said.

ProLogis has added 13 modern distribution facilities to PEPF II, covering just over 263,000 m² in six target European countries, with third-party appraised gross values of EUR 174.2mln, representing a 6.9% yield on the investment. The company said the facilities are on average 1.5 years old, 98.9% occupied by global customers such as Wincanton, Fiege and DHL and have on average 6.8 years to lease expiry or 5.7 years to first lease break.

Following this acquisition, PEPF II’s portfolio consists of 83 buildings, covering 1.9 million m² in 10 European countries and valued at some EUR 1.5bn. This brings PEPR’s combined portfolio to 330 buildings and some 7.2 million m² of space in 12 European countries, a 15% increase in distribution space since end-December 2007, the company said.