Prologis European Properties to purchase EUR 4m of stock

Euronext-listed Prologis European Properties (PEPR) said last week it would purchase some EUR 4 mln of its stock over the following 10 trading days. Of the total, EUR 400,000 will be used for part of the remuneration package of non-executive directors. The remaining EUR 3.6 mln will be used to satisfy an obligation to partially pay for the acquisition of the Wroclaw DC8 building in southwest Poland with its own stock. PEPR earlier this year agreed to purchase the property from the Denver-based and New York stock exchange-listed Prologis.

The 19,300 m² Wroclaw DC8 building is let to Hi-P, a Singaporean contract manufacturer on a 20-year lease. The facility is located in Prologis Park Wroclaw, adjacent to an existing, fully let 18,600-m² building owned by PEPR. Prologis also has an additional 6 buildings totalling 127,600 m² in various stages of development in the park that are expected to be contributed to Prologis European Properties Fund II, in which PEPR has a 30% equity interest.

PEPR's acquisition of Wroclaw DC8 is part of the purchase of a portfolio of properties from Prologis for a total of EUR 215 mln. Prologis established PEPR in 1999 and retained a 24% stake following the 2006 initial public offering of its European unit.