ProLogis raises additional 637 million Euro ($689 Million) of private equity capital to support expa

Second financing for ProLogis European Properties Fund adds 1.8 billion Euro ($1.9 billion) of investment capacity, bringing ultimate fund size to over 4.5 billion Euro ($4.9 billion).

ProLogis today announced the completion of the second equity funding of ProLogis European Properties Fund (the Fund). A total of 637 million euro ($689 million) of additional third party equity has been committed through a private placement by 11 institutional investors representing 7 countries. Existing Fund investors participating in the second round capital raise represented 74% of the new equity, demonstrating their support of ProLogis´ European strategy. In addition, several new investors joined the Fund, including ATP (Denmark), IMMOWEST Immobilien Anlagen AG (Austria), Kommunernes Pensionsforsikring A/S (Denmark), and Metropolitan Life Insurance Company (United States).

Established in September 1999, the Fund has grown its base to approximately 2.7 billion euro ($2.9 billion) of properties. Total capacity related to the second financing of the Fund, including ProLogis´ expected equity investment and debt financing, is approximately 1.8 billion euro ($1.9 billion). Combining the existing fund capacity with the additional capital from the second raise and debt, the Fund has the ability to grow to over 4.5 billion euro ($4.9 billion).

Proceeds will be used to purchase ProLogis´ future stabilized European development properties as well as strategic acquisitions. The properties held in the Fund will be managed within the ProLogis Operating System(R) under the existing management contract established at the Fund´s inception. ProLogis will continue to have the largest equity interest in the Fund, which was 30.3% at June 30, 2003, and is committed to maintaining a 20% minimum equity ownership in the Fund. The Fund plans to maintain its conservative capital structure with targeted leverage of 50%.

'From our first foray into Europe in 1997, our team of over 200 local nationals has built ProLogis into the leading pan-European provider of distribution space. With the establishment of the European Properties Fund in 1999, our presence increased from approximately 985,000 m2 (10 million square feet) in 4 countries to our current position of more than 3.8 million m2 (41 million square feet),' K. Dane Brooksher, ProLogis chairman and chief executive officer, said. 'This dramatic expansion was accomplished by blending capital from the fund investors with the development and management expertise of ProLogis. Today, the Fund includes 205 facilities in 11 European countries.'

'The ongoing need for distribution network optimization and the expansion of the European Union continue to be key drivers of the demand for new distribution space. This second equity commitment by the Fund´s existing and new investors ensures we have the capital to continue to expand ProLogis´ premier platform in Europe while serving our customers with modern distribution facilities in key logistics hubs. As in North America and Japan, our property fund structure enhances returns by enabling us to recycle capital, coinvest profits and generate fee income through management of the properties, while providing an attractive return to our private equity partners,' added Jeffrey H. Schwartz, president of international operations for ProLogis.

Robert J. Watson, president and chief operating officer of Europe, said, 'The participation by leading institutional investors from around the globe demonstrates their confidence in our business model and our ability to capitalize on the opportunities that exist in Europe. ProLogis European Properties Fund represents an attractive vehicle for investors seeking access to the largest and only pan-European network of modern distribution facilities managed by a team of experienced local professionals.'

Dr. Seek Ngee Huat, president, GIC Real Estate Pte Ltd, the real estate investment company of the Government of Singapore Investment Corporation, said, 'We are excited to have the opportunity for fu

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