SAN FRANCISCO, Jan. 13, 2017 /PRNewswire/ -- Prologis, Inc.
(NYSE: PLD), the global leader in logistics real estate, announced
the consolidation of its Europe Logistics Venture 1 ("ELV1"), a
joint venture with Allianz, with its Prologis Targeted Europe
Logistics Fund ("PTELF"), a pan-European core open-end fund.
Under the terms of the transaction, PTELF will acquire ELV1,
real estate value of €571 million and will integrate its assets
into the PTELF portfolio. As part of the transaction, ELV1 has
acquired an additional asset from Prologis and Allianz has
purchased Prologis' 15 percent stake in ELV1. Prologis will also
receive net cash proceeds of approximately €183 million. With
the addition of Allianz, the Fund will have approximately 40
investors, including Prologis.
The transaction will give PTELF a stronger, more agile balance
sheet, diversification benefits, and an expanded relationship with
Allianz, a blue chip investor. ELV1's assets are strategically
located in high-growth, high barrier European markets in
Germany, France and the
Netherlands that are highly complementary to PTELF's
pan-European portfolio.
"Combining PTELF and ELV1 benefits all parties involved," said
Gary Anderson, CEO, Prologis Europe
and Asia. "Allianz meets its
investment objective by deploying more capital in European
logistics real estate, existing investors in PTELF benefit from
improved scale, a stronger balance sheet and greater liquidity, and
Prologis further streamlines its strategic capital business."
"By contributing ELV1, its prior and successful joint venture
with Prologis into PTELF, Allianz will gain exposure into a larger,
more liquid portfolio with greater diversity, at a time when the
industry is also consolidating," said François Trausch, CEO of
Allianz Real Estate. "As the logistics sector is a particular area
of focus in our portfolio construct, Allianz is looking forward to
the strengthening of its relationship with Prologis by becoming the
largest investor in PTELF and supporting the future growth of the
fund."
Prologis currently owns and operates approximately 178 million
square feet in 731 buildings across the European market.
ABOUT PROLOGIS
Prologis, Inc. is the global leader in
logistics real estate with a focus on high-barrier, high-growth
markets. As of September 30, 2016,
the company owned or had investments in, on a wholly owned basis or
through co-investment ventures, properties and development projects
expected to total approximately 665 million square feet (62 million
square meters) in 20 countries. Prologis leases modern distribution
facilities to a diverse base of approximately 5,200 customers
across two major categories: business-to-business and retail/online
fulfillment.
FORWARD-LOOKING STATEMENTS
The statements in this
document that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements are based on
current expectations, estimates and projections about the industry
and markets in which we operate as well as management's beliefs and
assumptions. Such statements involve uncertainties that could
significantly impact our financial results. Words such as
"expects," "anticipates," "intends," "plans," "believes," "seeks,"
"estimates" and variations of such words and similar expressions
are intended to identify such forward-looking statements, which
generally are not historical in nature. All statements that
address operating performance, events or developments that we
expect or anticipate will occur in the future — including
statements relating to rent and occupancy growth, development
activity and changes in sales or contribution volume of properties,
disposition activity, general conditions in the geographic areas
where we operate, our debt, capital structure and financial
position, our ability to form new co-investment ventures and the
availability of capital in existing or new co-investment ventures —
are forward-looking statements. These statements are not guarantees
of future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Although we believe the
expectations reflected in any forward-looking statements are based
on reasonable assumptions, we can give no assurance that our
expectations will be attained and therefore, actual outcomes and
results may differ materially from what is expressed or forecasted
in such forward-looking statements. Some of the factors that may
affect outcomes and results include, but are not limited to: (i)
national, international, regional and local economic climates, (ii)
changes in financial markets, interest rates and foreign currency
exchange rates, (iii) increased or unanticipated competition for
our properties, (iv) risks associated with acquisitions,
dispositions and development of properties, (v) maintenance of real
estate investment trust status, tax structuring and income tax
rates (vi) availability of financing and capital, the levels of
debt that we maintain and our credit ratings, (vii) risks related
to our investments in our co-investment ventures, including our
ability to establish new co-investment ventures and funds, (viii)
risks of doing business internationally, including currency risks,
(ix) environmental uncertainties, including risks of natural
disasters, and (x) those additional factors discussed in reports
filed with the Securities and Exchange Commission by us under the
heading "Risk Factors." We undertake no duty to update any
forward-looking statements appearing in this document.
ABOUT ALLIANZ
Allianz represents one of the world's
strongest financial communities, offering a broad range of
insurance and asset management services. In 2015, Allianz employed
around 142,000 staff in some 70 countries and achieved total
revenues of 125.2 billion euros and
an operating profit of 10.7 billion
euros. Allianz Group managed an investment portfolio of
around 640 billion euros.
Additionally, our asset managers Allianz GI and PIMCO managed
1.3 trillion euros of third party
money. Allianz is active in a wide variety of sectors including
real estate, infrastructure, renewable energy and equity and debt.
Allianz's long-term value strategies maximize risk-adjusted
returns.
ABOUT ALLIANZ REAL ESTATE
Allianz Real Estate is the
strategic center of expertise in real estate within the Allianz
Group, and a leading international real estate investment and asset
manager. Allianz Real Estate develops and executes worldwide
tailored portfolio and investment strategies on behalf of the
Allianz companies - direct and indirect investments as well as
commercial mortgage loan financing. Allianz Real Estate has
approximately €45 bn assets under management.
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SOURCE Prologis, Inc.