Prologis, Inc. 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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