– A land bank in the United Kingdom, covering over 323.76 hectares, on which 1.30 to 1.39 million m2 of new facilities can be built, with an estimated value upon completion exceeding 2.25 billion USD;
– Astral, a Parkridge-owned logistics facility construction business in the UK, which is currently executing 10 industrial projects with a total area of 483,000 m2;
– Recently launched operations in Western Europe, focusing on the construction of new industrial facilities in Belgium, France, Germany, Italy, Luxembourg, the Netherlands, and Spain;
– A 50 percent stake in a joint venture focused on building logistics facilities in Central Europe, controlling land with approximately 483,000 m2 of industrial space, as well as holding an additional 418,000 m2 of space under construction. The total estimated value of these facilities upon completion will exceed 650 million USD. The company also owns 520,252 m2 of existing warehouse facilities.
In a separate transaction, Parkridge’s partner in the joint venture has agreed to sell its 50 percent stake in the Central European business to ProLogis for 345 million EUR (449 million USD), including 246 million EUR (320 million USD) of debt to be repaid upon closing. Existing industrial properties, as well as those built on land acquired in the transaction, are to be contributed by ProLogis to the ProLogis real estate fund.
– This transaction strengthens our position as the largest provider of distribution facilities in Europe – said Jeffrey H. Schwartz, CEO of ProLogis. – It enables us to increase our presence in current and target markets by acquiring one of our main competitors in industrial facility construction in Europe. Additionally, it enriches our land bank in Central Europe and the United Kingdom, while strengthening our team with some of the industry’s leading real estate specialists. We look forward to combining both companies and the long-term benefits that the acquisition will create for our firm.
As part of the transaction, ProLogis also acquired a 25 percent stake in Parkridge’s non-industrial real estate development business. This business includes two mixed-use development projects in the UK; the construction of retail warehouses for the UK, French, and Spanish markets; as well as a rapidly growing retail construction business in Central Europe.
ProLogis will pay approximately 227 million GBP (443 million USD) for Parkridge’s industrial construction business, after deducting 50 million GBP (98 million USD) in profits related to the timing of outstanding land titles in the UK. The total consideration for Parkridge’s industrial construction business includes a cash component, representing 25.4 percent of the amount, as well as 74.6 percent paid in ProLogis common stock. The purchase price for the investment in Parkridge’s retail business is approximately 71 million GBP (138 million USD) payable in cash. The cash consideration for the Parkridge transaction and the acquisition of the partner’s stake in the joint venture will be funded from ProLogis’ existing credit lines and a new 600 million USD multi-currency term loan.