European investors have rushed to the listing of global distribution facilities provider ProLogis.
The listing of ProLogis European Properties on the Euronext Amsterdam N.V. Eurolist has raised €2.7 billion.
The initial public offering issued 45.3 million ordinary units at raised €14.35 per unit. Proceeds from the sale of the ordinary units, subject to certain adjustments, were paid to the selling unitholders. PEPR did not receive any proceeds from the offering.
As of June 30, 2006, PEPR owned 281 distribution facilities comprising 5.4 million sqm of leasable space. The portfolio had an overall occupancy rate of 97.3% and was independently valued at approximately €4.2 billion.
ProLogis is a leading provider of distribution facilities and services with 37.6 million sqm in more than 2,400 properties owned, managed and under development in 81 markets in North America, Europe and Asia as of June 30, 2006.
"The success of this offering is testament to the quality of our European property portfolio and the market-leading position we’ve established in Europe since forming PEPR in 1999," ProLogis’s chief executive Jeffrey Schwartz said.
"Over the past seven years, we have created substantial value for our unitholders and are pleased with the liquidity the IPO offers them.
"The IPO also underscores the many advantages of our fund strategy, both for ProLogis and our property fund partners. We were able to satisfy the future redemption needs of PEPR’s investors by creating a liquid public market for their units. At the same time, we have the largest single ownership interest and continue to manage PEPR, thereby preserving important customer relationships,” he added.
Robert Watson, who served as head of ProLogis’ operations in Europe from 1999 to 2003, will become chief executive PEPR.
Peter Cassells, who joined ProLogis in 2000 as vice president, fund manager, will become chief financial officer of PEPR. Ralf Wessel will become head of asset management for PEPR.
By Adam Parsons
