Prologis Enters €2.4B JV with Norges Bank Investment Mgmt

Prologis, Inc. (NYSE: PLD), theleading global owner, operator and developer of industrial real estate, todayannounced the signing of a definitive agreement to form Prologis EuropeanLogistics Partners Sàrl, a euro-denominated joint venture. The venture willacquire a portfolio of high-quality distribution facilities wholly owned byPrologis in 11 target European global markets.Prologis' partner is Norges Bank Investment Management (NBIM), which is themanager of the Norwegian Government Pension Fund Global. Prologis EuropeanLogistics Partners will be structured as a 50 / 50 joint venture with anequity commitment of €2.4 billion ($3.1 billion), which includes a €1.2billion ($1.55 billion) co-investment by both NBIM and Prologis. The leverageratio is initially expected to be less than 15 percent of the aggregate grossvalue of the venture's assets, which will be repaid upon maturity, enablingthe venture to operate on an all-equity basis.Upon closing, the venture will acquire a stabilized portfolio of 195properties totaling approximately 49 million square feet (4.5 million squaremeters); about 75 percent of the properties coming from the former ProLogisEuropean Properties (PEPR) fund and the remaining 25 percent coming from otherPrologis wholly owned assets.