Prologis Announces Pricing of REIT in Japan
Prologis, Inc. (NYSE: PLD), the leading global owner, operator and developer of industrial real estate, today announced the pricing of 182,350 units at a price of 550,000 Japanese yen per unit of Nippon Prologis REIT, Inc. (NPR), a Japanese real estate investment trust. The offering was priced at the high end of the range and comprised a domestic placement of 109,410 units (60 percent of units outstanding) and an international placement of 72,940 units (40 percent of units outstanding).
Prologis is contributing 12 Class-A properties in Japan to NPR (3283:Tokyo Stock Exchange) for initial consideration of approximately JPY 173 billion ($1.9 billion). The sale of the assets is expected to be completed on Feb. 15, 2013. Inclusive of NPR's concurrent borrowings, net cash proceeds to Prologis from the sale are expected to be JPY 153 billion ($1.7 billion), before the greenshoe option. Prologis intends to use the proceeds primarily for the repayment of debt and future investment in Japan.
The portfolio, with a weighted average age of 3.4 years, totals 9.6 million square feet (890,000 square meters), and is principally located in its global markets of Tokyo and Osaka. NPR has exclusive negotiation rights for eight additional properties owned by Prologis, and will receive pipeline, operational and personnel assistance under a sponsor support agreement. In addition, wholly owned subsidiaries of Prologis will serve as NPR's property and asset managers.
Prologis will initially hold 20 percent of NPR and if the greenshoe option of 9,118 units is exercised in full, Prologis' investment will be reduced to approximately 15 percent. NPR is expected to list on the Tokyo Stock Exchange on Feb. 14, 2013.
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