Prologis European Properties (PEPR) has announced it is to invest EUR 900 mln over the next three years in a new private equity vehicle. ProLogis European Properties Fund II will acquire assets from Prologis' EUR 3 bn development pipeline in Europe. A further 2,500 hectares of land is owned by Prologis or under its control.
Prologis European Properties (PEPR) has announced it is to invest EUR 900 mln over the next three years in a new private equity vehicle. ProLogis European Properties Fund II will acquire assets from Prologis' EUR 3 bn development pipeline in Europe. A further 2,500 hectares of land is owned by Prologis or under its control.
Prologis said the initial portfolio it is contributing to the fund will be valued at about EUR 600 mln. The open-ended, infinite-life fund will have a total equity capitalisation of some EUR 3 bn, comprising EUR 510 mln directly from ProLogis and EUR 2.5 bn from third-party institutional investors, including PEPR's EUR 900 mln stake. Leverage of 50 - 60% will take the total capitalisation of the fund to between EUR 6 and EUR 7.5 bn. PEPF II will invest this capital to acquire modern distribution facilities.
