The first is a seven-year, $52.5 million secured financing with an undisclosed life insurance company on behalf of ProLogis California Fund. The financing has a 6.60% interest rate, a loan-to-value ratio of approximately 50% and is secured by 11 industrial properties located in the Los Angeles Basin.
The proceeds were used to refinance outstanding debt, and with this refinancing, the fund has addressed debt maturities into 2014, ProLogis says.
The second financing, as announced earlier by ProLogis European Properties Fund, is a 48 million euro ($70.5 million), five-year, secured financing with a German Landesbank (i.e., a state-owned bank) that is secured by four properties in Sweden. The proceeds from this financing were used to refinance outstanding debt.
‘We continue to aggressively address fund debt maturities," says ProLogis Chief Financial Officer William E. Sullivan. "So far this year, we have successfully addressed, refinanced or paid off $2.2 billion of 2009 and 2010 fund debt maturities, including virtually 100 percent of $1.4 billion of 2009 maturities."