Prologis European Properties has announced the completion of the sale of its remaining investment and future commitment to Prologis European Properties Fund II (PEPF II) to six institutional investors. The group raised gross proceeds of EUR 14.4 mln from the sale of its remaining 10% interest in PEPF II, and eliminated EUR 174 mln of future commitments to the fund. The stake was sold at a 28% discount to the December 2008 valuation.
Prologis European Properties has announced the completion of the sale of its remaining investment and future commitment to Prologis European Properties Fund II (PEPF II) to six institutional investors. The group raised gross proceeds of EUR 14.4 mln from the sale of its remaining 10% interest in PEPF II, and eliminated EUR 174 mln of future commitments to the fund. The stake was sold at a 28% discount to the December 2008 valuation.
In December 2008, the company sold a 20% interest in the fund at a 30% discount to Prologis. Overall, the disposal of the entire position relieves PEPR of the obligation to fund further investments of EUR 522 mln in PEPF II before August 2010. The company had committed to invest EUR 900 mln in the fund over three years.
Net proceeds of both disposals will be used to reduce debt in line with the strategic initiatives outlined by PEPR in December.
M3 Capital Partners acted as exclusive financial adviser and placement agent to PEPR.
The distribution facilities fund 25%-owned by US giant Prologis, reported an IFRS loss of EUR 578 mln for the year to end-December 2008.
