Prologis European Properties has invested a further EUR 20mln in Prologis European Properties Fund II (PEPF II), a private equity fund established to acquire assets from Prologis' development pipeline in Europe as well as assets from third-parties. The investment, entirely funded from cash in hand, increases PEPR's gross investment in PEPF II to EUR 315mln and maintains PEPR's 30% ownership in the fund.
Prologis European Properties has invested a further EUR 20mln in Prologis European Properties Fund II (PEPF II), a private equity fund established to acquire assets from Prologis' development pipeline in Europe as well as assets from third-parties. The investment, entirely funded from cash in hand, increases PEPR's gross investment in PEPF II to EUR 315mln and maintains PEPR's 30% ownership in the fund.
Prologis has contributed 14 modern distribution facilities into PEPF II, covering 235,500 m2 in France (1), Germany (2), Hungary (5) and Poland (6), with third-party appraised values totalling EUR 165mln gross, representing a 6.8% yield on investment. These facilities are two years old on average, 99.9% occupied by pan-European customers such as Kuehne + Nagel, Schneider Electric and Wincanton and have 4.1 years to lease expiry or four years to first lease break on average.
Following this acquisition, PEPF II's portfolio consists of 107 buildings, covering 2.5 million m2 in 11 European countries. This brings PEPR's combined portfolio to 354 buildings and some 7.7 million m2 of space in 12 European countries.
Additionally, PEPF II has recently obtained a five-year secured term loan for up to EUR 276mln, provided by a four-bank syndicate led by Hypo Real Estate Bank International. The funds will be used to finance PEPF II properties located in Central Europe. Gordon Keiser, chief executive officer, said: 'Given current challenging credit market conditions, PEPF II's ability to access new debt underlines the strong business relationships Prologis and PEPR have with the global banking community.'
