ProLogis Closes $104.7 Million Portfolio Financing for ProLogis North American Industrial Fund II

ProLogis, a leading global provider of distribution facilities and services, announced today that it has closed a $104.7 million, secured financing with a large institutional investor on behalf of an affiliate of ProLogis North American Industrial Fund II. The ten-year financing has a coupon of 6.38 percent and represents a loan-to-value of approximately 58 percent on five geographically diverse, US industrial properties. The proceeds will be used to refinance a $62 million secured debt facility that was set to mature in January 2009 and pay down $42 million of the Citi bridge debt facility, thereby reducing 2009 maturities in the fund by approximately $104 million.

The company outlined an action plan for investors on November 13th. The plan includes re-financing and/or renegotiating debt maturities on ProLogis’ balance sheet and in its property funds, halting new development starts, shrinking the development pipeline, de-levering the balance sheet, and retaining capital through G&A cuts and a reduction of the dividend. “We will continue to report our progress as we execute on our plan,” said Bill Sullivan, chief financial officer.