Jones Lang LaSalle

ProLogis sets up $4 billion industrial fund
The Denver Business Journal - February 15, 2006

ProLogis has formed ProLogis North American Industrial Fund LP, which will own recently developed properties in major distribution markets throughout the United States and Canada, the company said Wednesday.

The open-end, infinite-life fund is expected to have a total capitalization of approximately $4 billion, including $1.5 billion of third-party equity, ProLogis' 20 percent equity interest and targeted leverage of 55 percent to 60 percent.

ProLogis (NYSE: PLD), a Denver-based global provider of distribution facilities and services, will contribute the properties it acquired in January 2006 when it purchased the remaining 80 percent ownership interest in each of ProLogis North American Properties Funds II, III and IV from an affiliate of Arcapita Bank B.S.C. This initial portfolio comprises 12.2 million square feet in 77 buildings in 23 U.S. markets. The properties have an average age of seven years and are currently 96 percent leased to a diverse mix of more than 173 customers.

Separately, ProLogis said it had increased the range for 2006 ProLogis-defined funds from operations by 5 cents per share, resulting in a new range of $2.95 to $3.15 per share, prior to charges of 1 to 3 cents per share for the remaining costs associated with the Catellus merger and the move of the company's Denver headquarters.

The current guidance range for 2006 earnings per share is $1.85 to $2.25 per share.