San Francisco-based Prologis Inc. recently revealed that Japanese real estate investment trust Nippon Prologis REIT Inc. will issue new investment units. Prologis will retain its 15% ownership interest in NPR.
NPR intends to use the net proceeds from the issuance, estimated at JPY 33.9 billion ($299.7 million), for the repayment of the bridge loans used to acquire three class-A properties for JPY 55.8 billion ($493.5 million).
According to a prepared statement, the properties will be acquired from Prologis’ wholly owned Japan portfolio. The assets, totaling approximately 2.6 million square feet, were offered to NPR through its sponsor support agreement with Prologis. The issuance is expected to close August 7, 2017 in Japan.
NPR is managed by a wholly owned subsidiary of Prologis.
As of June 30, 2017, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 684 million square feet in 19 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,200 customers across two major categories: business-to-business and retail/online fulfillment.
As The REIT Wire recently reported, Prologis Inc. recently reported its results for Q2, where Hamid Moghadam, chairman and CEO of the San Francisco-based REIT said that results “were excellent” and reflect record rent increases and higher earnings from its strategic capital business. “Market conditions continue to be healthy,” he said. On the margin, he explains that the company is “now even more positive as we see increased activity from our customers and a greater willingness to compete and pay for quality locations. Market rent growth surprised us to the upside, and the mark-to-market of our portfolio increased to 13% globally, which positions us for strong operating performance for the next several years.”