ProLogis European Properties considers offering €200 million convertible preferreds to unitholders

By Angela McDaniels

Tacoma, Wash., Sept. 28 - ProLogis European Properties may offer €200 million of convertible preferred units to its existing unitholders, according to a company news release.

The offering, which could be executed in multiple tranches, is one alternative being considered by the company and its board in order to satisfy the need for additional capital in the short term.

"Given improved capital market conditions, this option has become increasingly viable and is believed to be a potentially effective means of providing the business with the liquidity and financial flexibility that it requires," the company said in the release.

ProLogis said it has postponed the extraordinary general meeting that was scheduled for Wednesday in order to better understand objections raised by a minority of unitholders through follow-up discussions.

The company called the meeting for the purpose of approving the conversion of its legal structure from a fonds commun de placement into a societe d'investissement a capital fixe and to modify and modernize several elements of its corporate governance.

The majority of proxies received to date were in favor of the conversion, the release noted.

The company said it has not ruled out the option of seeking the conversion and subsequently issuing common equity.

ProLogis European Properties is a London-based real estate investment fund that owns distribution and logistics facilities. The company is incorporated in Luxembourg and has headquarters in London.

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