Prologis invests further EUR 91.7m in PEPF II

Prologis European Properties has announced a EUR 91.7 mln investment into Prologis European Properties Fund II (PEPF II). The private equity fund was established in August 2007 to acquire assets from Prologis' European development pipeline as well as conforming third-party assets. Funded from existing credit facilities Prologis’ total investment in the fund now stands at EUR 225 mln of the anticipated overall EUR 900 mln investment, maintaining a 30% ownership by the company.

The portfolio of PEPF II currently consists of 70 buildings covering 1.6 million m² in nine European countries. Overall value is estimated at around EUR 1.4 bn. Prologis has contributed 27 modern distribution facilities into the fund, accounting for 660,000 m² in seven target European countries. The average age of these facilities is 2.3 years along with an average of 8.1 years to lease expiry or 6.5 years to first lease break. Tenants of these fully-occupied sites include DHL, Kuehne & Nagel, Tesco and Volkswagen.

Robert Watson, chief executive officer, commented: 'We believe the opportunity afforded by our investment to date of EUR 225 mln in PEPF II’s EUR 1.4 bn and growing portfolio, in just over six months, exceeds what could have been achieved through direct investment on the open market. This investment enables us to enhance our relationships with strong pan-European focused customers and provides the long-term flexibility and strategic locations they require to optimise their supply chains. Additionally we are pleased to increase our investment in facilities that lead the way in enhanced sustainable development and operating attributes, a key objective for PEPR in the future.'