ProLogis European Properties has agreed new bank facilities and the sale of a portfolio as part of its plans to deleverage.
It said today, in its results for the first quarter of 2008, that it had agreed terms for €235m of bank loans and agreed to sell a €115m portfolio.
It also sold its final stake in PEPF II, a third, to six institutional investors for €14.4m. It now has no stake in PEPF II and no future funding obligations after selling the other two thirds to ProLogis last year.
Its net asset value per unit increased slightly from the end of 2008, by 2% to €8.18.
Peter Cassells, chief executive of PEPR, said: ‘PEPR has maintained strong operational performance and resilient financial results in spite of the continued turmoil in the financial markets and an uncertain economic outlook.
‘Our priority for operations in 2009 is to continue to drive cash flow from the portfolio through proactive asset management and exemplary customer service.
'In addition, we have made good progress with our actions to improve the financial flexibility and overall leverage levels of the business. We have €235 million of new secured bank loans agreed, subject to final approval with further negotiations underway with other liquidity sources. We are in the final stages of agreeing the disposal of a portfolio of assets generating approximately €115 million of proceeds and have a number of discussions underway for further property disposals.
‘Whilst the global economic outlook will remain challenging for the remainder of 2009, we believe that the strength of our pan-European portfolio, strong customer relationships and further progress with deleveraging initiatives will leave PEPR well positioned for the future.’