Prologis European Properties said on Wednesday it has invested a further EUR 42 mln in Prologis European Properties Fund II (PEPF II), a private equity fund set up to acquire assets from the company's development pipeline in Europe and conforming assets from third parties.
Prologis European Properties said on Wednesday it has invested a further EUR 42 mln in Prologis European Properties Fund II (PEPF II), a private equity fund set up to acquire assets from the company's development pipeline in Europe and conforming assets from third parties.
The capital injection, funded entirely from existing credit facilities, follows the May 29 investment of EUR 28.2mln and is in line with Prologis' target to invest EUR 60-80mln per quarter into PEPF II. It brings gross investment in PEPF II to EUR 295.2mln of its anticipated overall EUR 900mln investment and maintains Prologis' 30% ownership ratio.
Prologis said the latest funding had been used to acquire 10 distribution facilities for PEPF II. These cover 323,600 m2 in seven European countries and are valued by third parties at EUR 212.8mln gross (EUR 200.3mln net), representing a 6.8% yield on investment. The facilities are less than one year old on average, 99.6% occupied by pan-European customers such as Continental & Bridgestone, Tesco and Unilever and have 7.9 years to lease expiry or 7.0 years to the first lease break on average.
Following this acquisition, PEPF II's portfolio consists of 93 buildings, covering 2.2 million m2 in 11 European countries. It brings PEPR's combined portfolio to 340 buildings and some 7.5 million m2 of space in 12 European countries.