ProLogis increases ownership stake in European fund

ProLogis increases ownership stake in European fund Real estate investment trust ProLogis, a major provider of distribution facilities, said Friday it had agreed to purchase a 20 percent stake in ProLogis European Properties Fund II from ProLogis European Properties for about $61 million.
   The purchase price is at a discount of about 30 percent to existing net asset value and future funding obligations, according to ProLogis. The transaction is expected to close today.
   When completed, the deal will boost ProLogis direct ownership of the PEPF II fund to 37 percent. ProLogis will also take over $494.2 million of ProLogis European's future equity commitments, which will be deducted from gross contribution proceeds received by ProLogis over the next two years.
   Also under terms of the deal, ProLogis agreed to maintain a 20 percent interest in the PEPF II fund and is obliged to either sell its PEPF II interest and the future funding obligations on a higher bid by third parties, or retain the units by matching the price. Any incremental net proceeds from such future transactions would be delivered to ProLogis European under the deal.