Prologis has completed two financing deals totalling EUR 133 mln on behalf of Prologis European Properties Fund II (PEPF II). Proceeds from the financings were used to pay down PEPF II's warehouse line of credit.
Prologis has completed two financing deals totalling EUR 133 mln on behalf of Prologis European Properties Fund II (PEPF II). Proceeds from the financings were used to pay down PEPF II's warehouse line of credit.
An unnamed European mortgage lender provided a five-year loan with a 50% loan-to-value that is secured by a portfolio of 14 assets in Germany and the UK. The loan consists of two tranches. The first is EUR 25.4 mln with a 4.43% fixed interest rate. The second is £66.6 mln (EUR 73.6 mln) with a 5.03% fixed interest rate. This loan represents one of the largest secured, cross-border transactions done in the European debt market this year.
Additionally, an unnamed insurance company completed a £31.1 mln loan secured by a single UK asset. This loan has a 10-year term, a 6.17% fixed interest rate and a loan-to-value of 62%.
'These financings show the improvement we are seeing in the secured debt market in Europe,' said William E. Sullivan, Prologis' chief financial officer. 'While still challenging, Prologis' attractive assets make it possible to raise debt at reasonable prices.'
