Prologis Announces Nippon Prologis REIT's Issuance of New Investment Units [Real Estate]
Prologis, Inc. announced Nippon Prologis REIT, Inc. (NPR), a Japanese real estate investment trust, will issue new investment units. Prologis will retain at least a 15 percent ownership interest in NPR.
NPR intends to use the proceeds from the issuance to acquire eight Class-A properties for JPY 132.4 billion ($1.3 billion). The portfolio comprises six properties from Prologis Japan Fund 1, pursuant to the fund's unanimous vote to sell to NPR. The two additional properties will be acquired from Prologis' wholly owned Japan portfolio. The assets, totaling 6.7 million square feet (624,800 square meters), were made available to NPR through its sponsor support agreement with Prologis. The acquisition is contingent upon the successful issuance of units and is expected to close on June 13 in Japan.
"This acquisition demonstrates a significant benefit of the sponsor support agreement between Prologis and NPR, as the J-REIT had preferential information and negotiation rights to these high-quality assets," said Hamid R. Moghadam, chairman and CEO, Prologis. "This transaction aligns with the strategy to grow and further enhance the NPR portfolio and to increase unit holder value."
NPR is managed by a wholly owned subsidiary of Prologis.
This announcement is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States unless they are registered or exempt from registration.
Posted at 21:15