Prologis European Properties (PEPR), one of Europe鈥檚 largest owners of modern distribution facilities, plans to convert from a fonds commun de placement (FCP) to a soci茅t茅 d鈥檌nvestissement 脿 capital fixe (Sicaf) in a bid to increase its financial flexibility. PEPR has called an extraordinary general meeting on 30 September to get investor backing for the proposed change, which has already received regulatory approval.
Prologis European Properties (PEPR), one of Europe鈥檚 largest owners of modern distribution facilities, plans to convert from a fonds commun de placement (FCP) to a soci茅t茅 d鈥檌nvestissement 脿 capital fixe (Sicaf) in a bid to increase its financial flexibility. PEPR has called an extraordinary general meeting on 30 September to get investor backing for the proposed change, which has already received regulatory approval.
Commenting on the proposed conversion, PEPR's CEO Peter Cassells said: 'The change in structure will give PEPR greater financial flexibility to react to any further deterioration in the real estate and credit markets by enabling us to raise equity, if necessary, at a price below net asset value per share.' This option is prohibited under the FCP structure.
Other benefits include improved transparency as shareholders' rights are enshrined in law, with greater legal precedents; an enhanced corporate governance structure; and no impact on PEPR鈥檚 tax-efficient structure. Following conversion, PEPR will remain listed on Euronext Amsterdam.
