ProLogis Secures Funding to Refinance Debt
ProLogis (PLD) closed on $123m in secured financing for two of its property funds backed by industrial properties in California and Sweden. The California loan is a seven-year $52.5m financing funded by a “major life insurance company” on behalf of the ProLogis California Fund with a 6.6% interest rate and a 50% loan to value (LTV) for 11 industrial properties in the Los Angeles basin. The funds will refinance outstanding debt. The European loan is a five-year, €48m ($70.5m) loan financed by a German landesbank secured by four Swedish properties. The funds will refinance outstanding debt. “We continue to aggressively address fund debt maturities. So far this year, we have successfully addressed, refinanced or paid off $2.2bn of 2009 and 2010 fund debt maturities, including virtually one hundred percent of $1.4bn of 2009 maturities,” said ProLogis chief financial officer William Sullivan. The Denver-based provider of distribution facilities in North America, Europe and Asia leases its industrial facilities to more than 4,500 customers, including manufacturers, retailers, transportation companies, and third-party logistics providers. Write to Austin Kilgore.