ProLogis European in e120m disposal at 8% yield

Europe's largest logistics and warehouse group ProLogis European Properties has signed sale contracts worth just under e120m on a portfolio of seven distribution warehouses in The Netherlands and Germany with Curzon Capital Partners II, a core-plus fund managed by AEW Europe, the investment management arm of the French Natixis group. PEPR said the sale price reflects a discount of 6.4% to December 2008 valuations, and net proceeds will be used to reduce outstanding debt, including a portion of the e374m CMBS maturing in May 2010. AEW noted the net initial yield at sale was above 8%. The portfolio comprises 229,000 sq.m. of distribution space in the Dutch cities of Bergen op Zoom, Haaften and Rotterdam, and in Germany in Neumarkt, Peine, Soest and Straubing. PEPR's Simon Nelson commented: "We are pleased to have agreed this transaction at a level close to NAV within the current economic and global credit market environment." (Full story to be published in Property Finance Europe 121 on Monday 18 May)