ProLogis European Properties (Euronext: PEPR), Europe's largest owner of modern distribution facilities, announced today that it has completed a new five-year secured bank loan facility for approximately 48 mln. with Helaba (Landesbank Hessen-Thüringen), a new lender for PEPR.
Proceeds from the loan will be split into two tranches, the first for SEK 332.5 million (approximately 32.5 million) and the second for 15.5 million, both of which will be used to refinance outstanding debt.
The facility is secured by a portfolio of distribution facilities in Norrkoping, Orebro and Gothenburg, Sweden, the first time PEPR has used its Swedish assets for specific financing, and will mature in October 2014.
"This transaction is a further step in achieving our ambition to reduce short-term debt maturities, create a balanced maturity profile and decrease overall balance sheet risk," said Peter Cassells, Chief Executive Officer for PEPR.
"We continue to make good progress with our refinancing plans, with a further 600 million of new financing under active discussion, and are also taking steps to improve the future financial flexibility of the business."