ProLogis has completed the first raft of a number of measures – including sales and debt renegotiations – designed to shore up its balance sheet.

It has concluded the deal to sell its operations in China and Japan to GIC Real Estate and former chief executive Jeff Schwartz and also addressed debt problems across three of its funds.

The proceeds from the sale – a total cash consideration of $1.3bn – will be used to pay down ProLogis’s debt. The global industrial giant already received around $500m in payment for its operations in China and Japan in February and has now received the $845m balance.

It is also about to complete the $140m sale of ProLogis Park Misato, also to GIC Real Estate.

The proceeds will be realised in the second quarter of 2009.

Walt Rakowich, ProLogis chief executive, said: ‘Including the sale of this additional asset in Japan, we will generate approximately $1.5bn in cash proceeds, allowing us to make substantial progress toward our goal of de-leveraging our balance sheet by $2bn by the end of 2009.’

It has also extended the $167m loan in its ProLogis North American Industrial Fund III by three years, agreeing with the fund partner to reduce the loan by $60m; announced that it will repay ProLogis European Properties’ €335.9m of CMBS debt on 5 April, three months earlier than required; and closed a $120m, ten year secured financing deal on a 50% loan to value covenant for the ProLogis California Fund, the proceeds of which were partially used to refinance a further debt facility.

Chief financial officer William Sullivan said: ‘With our recent fund financing activity, we have addressed over 50% of 2009 fund-related maturities. Further de-leveraging activities, including the planned disposition of assets from our direct-owned portfolio, are underway and information will be provided as these initiatives come to fruition over the next 90 days.’