ProLogis European Properties (Euronext: PEPR), Europe's largest owner of modern distribution facilities, announced today that it has signed sale and purchase contracts with Curzon Capital Partners II, the Core Plus fund of AEW Europe, a leading European real estate investment manager, on a portfolio of seven distribution warehouses in the Netherlands and Germany, for gross proceeds of 119.5 million. The sale is expected to close in tranches over the next six to eight weeks.
ProLogis European Properties is Europe's largest owner of modern distribution facilities.
The portfolio comprises some 229,000 m² of distribution warehouse space at three locations in the Netherlands (Bergen op Zoom, Haaften and Rotterdam) and four locations in Germany (Neumarkt, Peine, Soest and Straubing). The sale price reflects a discount of 6.4% to December 2008 valuations. Net proceeds from the sale will be used to reduce outstanding debt, including a portion of the 373.8 million commercial mortgage-backed security maturing in May 2010.
Simon Nelson, Head of Asset Management, commented: "We are pleased to have agreed this transaction at a level close to NAV within the current economic and global credit market environment. This demonstrates that there is still good demand for high quality logistics assets. Proceeds from this sale will be used to reduce outstanding debt, provide further traction for our deleveraging initiatives and improve liquidity."