Prologis has combined its two European vehicles to create a €8.2 billion ($9.7 billion) open-ended fund.
The combination of Prologis Targeted Europe Logistics Fund (PTELF) and Prologis European Properties Fund II (PEPF II) made the Prologis European Logistics Fund. The two portfolios span 106 million square feet across 12 countries.
Under the terms of the transaction and subsequent to quarter end, assets of PTELF will be contributed to PELF in exchange for units. The exchange will be based on the fair market value of each fund as of Sept. 30, 2017. The transaction was not a liquidity event for Prologis, as it will retain its current ownership and hold 26 percent of the combined entity.
In separate news, during the third quarter, the company closed on the acquisition of its partner’s interest in its Brazil platform and contributed the former North American Industrial Fund to U.S. Logistics Fund, generating a one-time gain in earnings of approximately $560 mil
