ProLogis (NYSE: PLD), a leading global provider of distribution facilities, announced today that it has closed on US $123 million of secured financings for two of its property funds.
The first is a seven-year, US $52.5 million secured financing with a major life insurance company on behalf of ProLogis California Fund. The financing has a 6.60% interest rate, a loan-to-value of approximately 50% and is secured by 11 industrial properties located in the LA Basin. The proceeds were used to refinance outstanding debt, and with this refinancing, the fund has addressed debt maturities into 2014.
The second, as announced earlier by ProLogis European Properties Fund (Euronext: PEPR), is a €48 million (US $70.5 million), five-year, secured financing with a German Landesbank that is secured by four properties in Sweden. The proceeds from this financing were used to refinance outstanding debt.
"We continue to aggressively address fund debt maturities. So far this year, we have successfully addressed, refinanced or paid off US $2.2 billion of 2009 and 2010 fund debt maturities, including virtually one hundred percent of US $1.4 billion of 2009 maturities," said William E. Sullivan, Chief Financial Officer.