Prologis Sells Korea Portfolio and 20 Percent Interest In Korea Property Funds
SAN FRANCISCO, Sept. 8, 2011 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD), the leading owner, operator and developer of global industrial real estate, today announced the sale of eight wholly owned assets, as well as its interest in the ProLogis Korea Fund.
Disposition activity in Korea totaled $65.6 million in net proceeds to Prologis. It included a wholly-owned portfolio, comprising four properties totaling 424,787 square feet (39,464 square meters) and 37 acres of land, as well as the company's 20 percent interest in the ProLogis Korea Fund. The fund consisted of 12 properties, totaling 1.7 million square feet (161,048 square meters).
"We outlined a clear strategy for the new company with priorities that include aligning our portfolio with our investment strategy, refining our private capital business and strengthening our balance sheet," said Gary E. Anderson, chief executive officer for Europe and Asia. "The sale of one of our Korea wholly-owned portfolios and the interest in the Korea Fund touches all three strategic priorities."
With the completion of the disposition activity, Prologis’ remaining platform in Korea comprises three buildings totaling approximately 594,000 square feet (55,100 square meters) of operating properties which were 100 percent leased as of June 30, 2011.
About Prologis, Inc.
Prologis, Inc., the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of June 30, 2011, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 600 million square feet (55.7 million square meters) in 22 countries. The company leases modern distribution facilities to more than 4,500 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.
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The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: changes in general economic conditions in California, the U.S. or globally (including financial market fluctuations), global trade or in the real estate sector (including risks relating to decreasing real estate valuations and impairment charges); risks associated with using debt to fund the company's business activities, including refinancing and interest rate risks; the company's failure to obtain, renew, or extend necessary financing or access the debt or equity markets; the company's failure to maintain its current credit agency ratings or comply with its debt covenants; risks related to the merger transaction with ProLogis, and the risk that the merger may not achieve its intended results; risks related to the company's obligations in the event of certain defaults under co-investment venture and other debt; defaults on or non-renewal of leases by customers, lease renewals at lower than expected rent or failure to lease properties at all or on favorable rents and terms; difficulties in identifying properties, portfolios of properties, or interests in real-estate related entities or platforms to acquire and in effecting acquisitions on advantageous terms and the failure of acquisitions to perform as the company expects; unknown liabilities acquired in connection with the acquired properties, portfolios of properties, or interests in real-estate related entities; the company's failure to successfully integrate acquired properties and operations; risks and uncertainties affecting property development, redevelopment and value-added conversion (including construction delays, cost overruns, the company's inability to obtain necessary permits and financing, the company's inability to lease properties at all or at favorable rents and terms, and public opposition to these activities); the company's failure to set up additional funds, attract additional investment in existing funds or to contribute properties to its co-investment ventures due to such factors as its inability to acquire, develop, or lease properties that meet the investment criteria of such ventures, or the co-investment ventures' inability to access debt and equity capital to pay for property contributions or their allocation of available capital to cover other capital requirements; risks and uncertainties relating to the disposition of properties to third parties and the company's ability to effect such transactions on advantageous terms and to timely reinvest proceeds from any such dispositions; risks of doing business internationally and global expansion, including unfamiliarity with the new markets and currency risks; risks of changing personnel and roles; losses in excess of the company's insurance coverage; changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws; increases in real property tax rates; risks associated with the company's tax structuring; increases in interest rates and operating costs or greater than expected capital expenditures; environmental uncertainties and risks related to natural disasters; and our failure to qualify and maintain our status as a real estate investment trust. Our success also depends upon economic trends generally, various market conditions and fluctuations and those other risk factors discussed under the heading "Risk Factors" and elsewhere in our most recent annual report on Form 10-K for the year ended December 31, 2010 and our other public reports.
SOURCE Prologis, Inc.
Released September 8, 2011