Leading industrial and logistics operator Prologis has consolidated its Europe Logistics Venture 1 (ELV1), a joint venture with Allianz, with its Prologis Targeted Europe Logistics Fund (PTELF), a pan-European core open-end fund.
Under the terms of the transaction, PTELF will acquire ELV1 - which has a real estate value of €571 mln - and integrate its assets into the PTELF portfolio.
'Combining PTELF and ELV1 benefits all parties involved,' said Gary Anderson, CEO, Prologis Europe and Asia. 'Allianz meets its investment objective by deploying more capital in European logistics real estate, existing investors in PTELF benefit from improved scale, a stronger balance sheet and greater liquidity, and Prologis further streamlines its strategic capital business.'
As part of the transaction, ELV1 has acquired an additional asset from Prologis and Allianz has purchased Prologis' 15% stake in ELV1. Prologis will also receive net cash proceeds of approximately €183 mln. With the addition of Allianz, the fund will have approximately 40 investors, including Prologis.
'By contributing ELV1, its prior and successful joint venture with Prologis into PTELF, Allianz will gain exposure into a larger, more liquid portfolio with greater diversity, at a time when the industry is also consolidating,' said François Trausch, CEO of Allianz Real Estate. 'As the logistics sector is a particular area of focus in our portfolio construct, Allianz is looking forward to the strengthening of its relationship with Prologis by becoming the largest investor in PTELF and supporting the future growth of the fund.'
According to Prologis, the transaction will strengthen PTELF's balance sheet, bringing diversification benefits and an expanded relationship with Allianz. ELV1's assets are currently located in high-growth, high barrier European markets in Germany, France and the Netherlands.
Prologis owns and operates approximately 178 million ft2 (16.5 million m2) in 731 buildings across the European market.
