Finance Lending
European ProLogis Fund Secures $383M Refi
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.

 
Recent Lending Headlines
Education Realty Nabs $222M
Jan. 06, 2009
Student housing REIT Education Realty Trust Inc. has closed a $222 million secured credit facility, courtesy of Fannie Mae DUS lender Red Mortgage Capital Inc., and is wasting precious little time making use of the proceeds.
Emeritus Closes Refi Deal, Extends $73M Debt
Jan. 05, 2009
Assisted living and Alzheimer's care facilities provider Emeritus Corp. capped the end of the year by ensuring there would be no material maturities hanging over its head in 2009. The company wrapped up the $36.3 million refinancing of seven properties through Freddie Mac, a move that allowed it to pay down and extend an existing debt with Capmark.
3Q GDP Down, 4Q Expected to Be Worse
Dec. 24, 2008
The quarterly report by the U.S. Department of Commerce on the national GDP is something of a lagging indicator. The fact that the U.S. economy contracted 0.5 percent in the third quarter--July to September--might be worrisome, but it only raises the further question of how much contraction will happen in the fourth quarter.
paulson A Bailout for Commercial Real Estate?
Dec. 22, 2008
"Right now, we believe there is insufficient systemic capacity to refinance expiring, performing commercial real-estate loans," reads a letter from a dozen commercial real estate trade groups to Treasury Sec. Henry Paulson, according to the Wall Street Journal this morning. In other words, the commercial side of the business, long perceived as relatively healthy compared with the residential side, is warning of dire straits ahead unless refinancing money is available in the near future.
CMBS Delinquencies Speeding Up: Fitch
Dec. 22, 2008
Back in January 2008, long before the capital markets took their astonishing twists, Fitch Ratings made a sobering prediction: By the end of the year, its CMBS loan delinquency index would be double or triple the 0.28 percent recorded at the end of 2007. Fitch’s crystal ball turned out to be right on the money. On Friday the ratings agency reported that CMBS delinquency reached 0.64 percent for November. At this pace, Fitch projects that CMBS delinquencies could hit 2 percent by the end of 2009.
 
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