Prologis closes on EUR 622m of funding

European logistics operator Prologis has completed four financings worth a total of EUR 622 mln for its European property funds. The Prologis European Properties (PEPR) fund has received three new four-year loans of EUR 441 mln and will use the proceeds to refinance outstanding debt, the company said.

The first and largest facility is a EUR 300 mln pan-European syndicated loan with six European lenders arranged by Goldman Sachs. The syndicate includes Deutsche Pfandbriefbank (as facility and security agent), AXA, Bawag P.S.K., Credit Foncier de France, M&G Investments and ING Real Estate Finance. The loan has a loan-to-value of 52% and is secured by a portfolio of 39 properties located in four European countries.

The second facility is a EUR 74 mln loan, split into two tranches, with Berlin Hyp. The first tranche of EUR 48.3 mln was received at end-December 2009 with the remaining EUR 25.7 mln received this week. The loan is secured by a portfolio of 17 German and Polish assets, and has a loan-to-value of 50%. The final facility is a EUR 74.5 mln loan, of which EUR 66.9 mln has been received and a further EUR 7.6 mln committed, with Deutsche Pfandbriefbank. The EUR 66.9 mln tranche has a loan-to-value of 55% and is secured by a portfolio of nine French and UK assets.

Additionally, ProLogis completed a EUR 181 mln financing for Prologis European Properties Fund II, the largest single-lender mortgage financing completed in Europe since the fall of 2008. This financing is secured by 22 assets in France and has a loan-to-value ratio of 60%.

'With these financings, we have reduced 2010 maturities within the two funds to under EUR 336 mln - significant progress from the EUR 1.8 bn we were faced with as of December 31, 2008,' said William E. Sullivan, Prologis' chief financial officer.