ProLogis, the leading global provider of distribution facilities has announced today, October 18, 2010 that it has got into a definitive contract to sell worth $1.02 billion real estate properties with Blackstone Real Estate Advisors. The company’s real estate properties consist of ProLogis’ interests funds in three of its property and a minority interest in a hotel property.
The $1.02 sale includes a North American industrial portfolio that consists of 180 properties, and also the company’s minority interest in the Hilton New Orleans Riverside and related hotel property, as well as its 20 per cent venture in ProLogis North American Property Funds VI – VIII.
ProLogis stated that it will retain a preferred equity interest rate for their industrial portfolio of about $190 million.
The company is also happy to publicize the transaction and to have exceeded the pinnacle-end of the company’s anticipated range of dispositions.
ProLogis also stated that the transaction with Blackstone will support their strategy of reorganizing the company’s investment.
ProLogis expects the deal of its real estate properties to close in the middle of November 2010.
The company is planning to use the funds from the sale and the year-to-date dispositions and contributions, which is expected to generate about $1.6 billion to pay its worth about $190 million debt, and for funding new development activities.
ProLogis owns more than 475 million square feet of industrial space in markets across North America, Asia and Europe. It also leases its industrial and real estate properties to about 4,400 customers in different real estate markets.