ProLogis closes on €622 million of financings for European Property Funds (EU)
Friday 22 January 2010
ProLogis, a leading global provider of distribution facilities, announced today that over the past four weeks it has completed four financings for its European property funds, totaling €622 million. The four financings have a weighted average coupon of 4.91%.
Three, four-year financings, resulting in €441 million of funding, were completed for ProLogis European Properties. They have loan-to-value ratios of between 50 and 55% and are secured by assets located in Germany, Belgium, France, Italy, Spain, Poland and the United Kingdom. The largest component of these financings is a €300 million Pan-European, syndicated loan with six European lenders, arranged by Goldman Sachs, which was one of the largest loans of this kind done in the European real estate sector since 2008.
ProLogis also completed a €181 million financing for ProLogis European Properties Fund II, the largest single-lender mortgage financing completed in Europe since the fall of 2008. This financing is secured by 22 assets in France and has a loan-to-value ratio of 60%.
"With these financings, we have reduced 2010 maturities within the two funds to under
€336 million - significant progress from the €1.8 billion we were faced with as of December 31, 2008. With the capital transactions in progress and available liquidity within the funds, we are comfortable with our ability to address the remaining maturities in the near future," said William E. Sullivan, ProLogis' chief financial officer. "The European financing market continues to demonstrate its diversity and resilience, as we are able to complete transactions with a wide spectrum of lenders at attractive rates."