Prologis to boost stake in Prologis European Properties

Denver-based Prologis, the world's leading provider of distribution facilities, has announced plans to purchase additional ordinary shares carrying voting rights of Prologis European Properties, a Luxembourg closed-ended investment fund. The company said the transaction would take place in the open market or in privately negotiated transactions. Prologis currently holds approximately 24.8% of PEPR's outstanding ordinary units.

'In our view, PEPR's unit price does not fully reflect the significant progress made over the past 14 months to manage through the downturn,' said Walter C. Rakowich, Prologis chief executive officer. 'During this time, we have worked diligently to strengthen PEPR's financial condition, maintain PEPR's strong occupancy and optimise the earnings power of its high quality assets. We will continue to manage PEPR in a way that maximises value, and we intend to increase our ownership, as we believe PEPR units represent an attractive investment opportunity for ProLogis.'

Prologis said it does not intend at this time to increase its equity ownership of PEPR beyond 33.33% of ordinary units carrying voting rights, a level which would trigger a mandatory tender offer for the remaining PEPR Units under Luxembourg law.