Prologis consolidates two European funds and strengthens relationship with Allianz in a transaction valued at EUR571 million
Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, announced the consolidation of its Europe Logistics Venture 1 (“ELV1”), a joint venture with Allianz, with its Prologis Targeted Europe Logistics Fund (“PTELF”), a pan-European core open-end fund.
Under the terms of the transaction, PTELF will acquire ELV1, real estate value of €571 million and will integrate its assets into the PTELF portfolio. As part of the transaction, ELV1 has acquired an additional asset from Prologis and Allianz has purchased Prologis’ 15 percent stake in ELV1. Prologis will also receive net cash proceeds of approximately €183 million. With the addition of Allianz, the Fund will have approximately 40 investors, including Prologis.
The transaction will give PTELF a stronger, more agile balance sheet, diversification benefits, and an expanded relationship with Allianz, a blue chip investor. ELV1’s assets are strategically located in high-growth, high barrier European markets in Germany, France and the Netherlands that are highly complementary to PTELF’s pan-European portfolio.
“Combining PTELF and ELV1 benefits all parties involved,” said Gary Anderson, CEO, Prologis Europe and Asia. “Allianz meets its investment objective by deploying more capital in European logistics real estate, existing investors in PTELF benefit from improved scale, a stronger balance sheet and greater liquidity, and Prologis further streamlines its strategic capital business.”
“By contributing ELV1, its prior and successful joint venture with Prologis into PTELF, Allianz will gain exposure into a larger, more liquid portfolio with greater diversity, at a time when the industry is also consolidating,” said François Trausch, CEO of Allianz Real Estate. “As the logistics sector is a particular area of focus in our portfolio construct, Allianz is looking forward to the strengthening of its relationship with Prologis by becoming the largest investor in PTELF and supporting the future growth of the fund.”
Prologis currently owns and operates approximately 178 million square feet in 731 buildings across the European market.