Sept 5, 2008
By: Barbra Murray, Contributing Editor

ProLogis European Properties Fund II, a private equity fund established by Denver-based distribution facilities provider ProLogis, has attained a five-year secured term loan facility valued at €264 million, or approximately $383 million, for the purpose of refinancing 34 properties in Central Europe.

Hypo Real Estate Bank International AG provided the loan, acting as facility agent along with Aareal Bank AG, Deutsche Postbank AG and Helaba Landesbank Hessen-Thüringen. The portfolio of distribution facilities encompasses an aggregate 7.5 million square feet of recently constructed space in Poland, the Czech Republic, Slovakian and Hungary.

"ProLogis is a sector leader, with global experience and in our experience is an excellent operator," Harin Thaker, Hypo CEO-Europe, told CPN. "The portfolio we have financed is made up of top quality real estate. On the Central European real estate market is strong demand for logistics infrastructure."

It has been an active year for PEPF II. During the second quarter, the fund enhanced its portfolio with the addition of 23 properties valued at approximately $534 million and totaling 6.4 million square feet in 10 countries in Europe. Contributed by ProLogis, the assets are less than one year old and have an average 99.1 percent occupancy level. Tenants at the buildings include DHL, Tesco, Unilever and Wincanton. Additionally, ProLogis established at $1.6 billion senior unsecured credit facility for PEPF II. ABN AMRO Bank N.V. served as facility agent, as well as lead arranger along with Banc of America Securities Ltd. and ING Real Estate Finance N.V.

The largest owner, manager and developer of distribution facilities in the world, ProLogis operates in 132 markets across North America, Europe and Asia. As of the close of the second quarter, the company's portfolio of owned, managed and in-progress properties encompassed of 542.3 million square feet valued at a total $40.4 billion.