ProLogis European Properties (PEPR) has sold a €425m (£284m) logistics portfolio in France to Foncière Europe Logistique, a subsidiary of Foncière des Régions.
The 556,000 sq m (5.9m sq ft) portfolio comprises buildings in Paris and in Vitrolles, outside Marseille. PEPR said it would use the proceeds from the sale to pay down debt and provide capital for reinvestment.
Prologis said it marketed the portfolio for sale because the average size of the buildings was not consistent with the rest of the PEPR portfolio in France and elsewhere in Europe. It said it remained committed to France where it still owns 60 distribution facilities totalling 1.5m sq m (16m sq ft)
Robert Watson, chief executive officer of PEPR, said: ‘The sale of these properties will bring our French platform in line with the rest of our portfolio of large, state-of-the-art distribution facilities. We believe this transaction will be accretive to earnings and create maximum value for unitholders.’
The sale is due to complete by the 31 July. CBRE, M3 Capital Partners and Morgan Stanley advised ProLogis European Properties.