Euronext-listed fund ProLogis European Properties (PEPR) has announced an offering of up to EUR 97.5 mln new ordinary units to speed up the deleveraging of the business.
PEPR - majority owned by New York-listed Prologis - is one of Europe's largest owners of modern distribution facilities.
The fund is offering up to 15.7 million new units on a pro rata basis to existing unitholders known to the management company and hold a stake in excess of 1% of the Ordinary Units. The Ordinary Units will be offered at EUR 6.20 per unit, equal to the recent tender offer price and a 10.1% premium to PEPR’s IFRS net asset value per ordinary unit as at end-June 2011.
The offer is expected to commence on 29 August 2011 and end on 2 September 2011.
Prologis has undertaken to subscribe to the offer in relation to its 92.6% holding in PEPR and to increase its subscription to up to 100% of the offer depending on the take-up by other unit holders.
The net proceeds of the offering will be used to accelerate deleveraging of the business, resulting in PEPR's pro-forma loan-to-value ratio will decrease to 47.8% from 51.1% as at end-June 2011. Following completion of the offer, PEPR intends to continue to retain distributable cash flow for the foreseeable future to further delever the business.
Separately, Prologis announced the sale of a 260,000 m2 industrial portfolio in the US for $118 mln (EUR 81 mln) to real estate investment manager Clarion Partners. The 13-asset portfolio was owned by ProLogis North American Properties Fund I.
Click on the link below to read more on 'Prologis sells portfolio in the US for EUR 81m' | 
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