The world's biggest distribution property owner, unveiled plans this week to float its E4.2bn (£2.85bn) European operation at the end of this month
ProLogis European Properties (PEPR), the European arm of the US REIT headed by Jeff Schwartz, is expected to have a market capitalisation after the initial public offering (IPO) on Amsterdam’s Euronext exchange of between E2.7bn and E2.8bn (£1.8bn to £1.9bn). Their decision marks the largest European property flotation for seven years.
As first revealed in Property Week (news, 23.06.06), Deutsche Bank and Morgan Stanley are acting as joint global co-ordinators and joint bookrunners for the IPO, which will be the biggest since 1999, when Canary Wharf Group raised more than £600m and initially was valued at £2.2bn. ABN Amro, Rothschild and JP Morgan have been appointed as co-lead managers and Kempen & Co will act as co-manager.
PEPR, which owns 58.1m sq ft (5.4m sq m) of distribution sheds spread across 11 European countries, said it hoped to raise about E738m (£503m) through its IPO at the end of September.
The final pricing for the 49.7m shares on offer will be announced on 22 September. The indicative price range is between E14.35 and E14.85 a share.
The IPO represents 26% of the company's total share capital. Parent ProLogis will retain its 24% stake but some of the other shareholders will be reducing their stakes.
The remaining 50% of PEPR is held by 21 institutional investors, including ABP, Singapore’s GIC Real Estate and Teachers Insurance, all three of which will be selling part of their stake.
Robert Watson, ProLogis president and chief operating officer in the US, will become chief executive officer of PEPR following the listing.