ProLogis European Properties obtains an amendment to its ¤900 million senior unsecured credit facility

Thursday, 17. September 2009 10:42
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News release
ProLogis European Properties obtains an amendment to its
¤900 million senior unsecured credit facility

Luxembourg - 17 September 2009 - ProLogis European Properties
(Euronext: PEPR), one of Europe's largest owners of modern
distribution facilities, is pleased to announce that it has obtained
an amendment to its ¤900 million senior unsecured credit facility.

The amendment, among other things, ensures that PEPR can continue to
use the senior unsecured credit facility following the proposed
conversion of its legal structure from a fonds commun de placement
('FCP') into a société d'investissement à capital fixe ('SICAF').

In addition, PEPR's consolidated tangible net worth covenant will be
reduced to ¤900 million from ¤1.1 billion currently. This provides
PEPR with additional flexibility to withstand further deterioration
in the value of its portfolio. The amendment also removes the
restriction on PEPR to make dividend payments, provided these
payments do not exceed 50% of distributable cash flow.

The amendment of the consolidated tangible net worth covenant and the
removal of the restriction on dividend payments will become effective
following PEPR's conversion of its legal structure to a SICAF and the
conclusion of a minimum equity raise of ¤200 million.

These amendments follow a number of actions already completed this
year by management to improve liquidity and reduce balance sheet
risk, including:

* The extension of a secured loan agreement with Deutsche
Pfandbriefbank AG, from original expiry of March 2010 to March 2013
* A new agreement with Eurohypo AG for a £86.1 million
(¤101.3 million) secured loan maturing in 2013
* Repayment of all amounts borrowed under the revolving
portion of the ¤900 million credit facility and partial repayment
of commercial mortgage backed securities (CMBS) IV notes (¤98.6
million)
* The disposal of a portfolio of nine distribution
facilities in The Netherlands and Germany for ¤119.5 million
* The disposal of five distribution facilities in the UK,
generating £64.4 million

Commenting on the amendment, Peter Cassells, chief executive officer
of PEPR, said: "This is a significant step in increasing our
financial flexibility and providing us with the necessary headroom
with which to operate. We thank our lenders for their support in this
regard, and in relation to our intention to convert PEPR into a
SICAF."


For further information, please contact:
ProLogis European Properties
+44 20 7518 8708
Jennifer van der Eem, VP Investor Relations
jvandereem@prologis.com

M:Communications
+44 20 7920 2323 or 7920 2369
Ed Orlebar/Marylène Guernier
orlebar@mcomgroup.com/ guernier@mcomgroup.com

Morgan Stanley
+44 20 7425 3009
Richard Stockton
Richard.stockton@morganstanley.com


About ProLogis European Properties
ProLogis European Properties, or PEPR, is one of the largest
pan-European owners of high quality distribution and logistics
facilities. PEPR was established in 1999 as a closed-end, real estate
investment fund, externally managed by a subsidiary of ProLogis, a
leading global provider of industrial distribution facilities. In
September 2006, PEPR was listed on Euronext Amsterdam.
As at 30 June 2009, PEPR has a portfolio of 232 buildings, covering
4.9 million square metres in 11 European countries, with a market
value of ¤3.0 billion. The portfolio has an occupancy level of 96.9%
and an average of 3.6 years to the next lease break or 5.8 years to
lease expiry.


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

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