ProLogis is to raise $1bn from a sale of shares to pay off its debt.

The US REIT is selling 152m shares at $6.60 each. Merrill Lynch, Citi and Deutsche Bank Securities are acting as bookrunners for the offering.

ProLogis has also completed a number of other de-leveraging steps, including buying back some of its debt.

PLD International Finance, an indirect subsidiary of ProLogis, has bought $57.6m of its $461m, 4.375% notes due April 2011 for $43.2m.

ProLogis has also repurchased around $162.8m of its convertible notes, including $21.7m of 2.25% convertible senior notes due 2037 for $12m, and $141.1m of its 1.875% convertible senior notes due 2037 for $72.3m.

Walt Rakowich, ProLogis chief executive, said: ‘Between our Eurobond tender launched last week and the repurchase of convertible debt at discounts to the principal amount, we have repurchased more than $220 million of senior notes and reduced our on-balance sheet debt by more than $94 million in recent weeks.’

William Sullivan, chief financial officer, said: ‘In addition, we are currently negotiating term sheets with various lenders for approximately $344 million in new secured borrowings in the United States and have fixed the interest rate on the full amount.

'We also are targeting new secured debt financings in Japan and are in active discussions with our bank group to restructure our global line of credit.’

During the first quarter of 2009, ProLogis completed $131m of contributions to ProLogis European Properties Fund II, that closed in March, It also continues to market around $700m of operating and development properties for sale, and says 85% of these are under offer.

It is also selling other assets or putting them into its funds in 2009, expected to total around $950m. This includes the sale of ProLogis Park Misato II to GIC Real Estate for $138m, which is due to close in April.