Japanese real estate investment trust Nippon Prologis REIT (NPR) is to issue new investment units.
Prologis will retain its 15 per cent ownership interest in NPR.
NPR intends to use the net proceeds from the issuance, estimated at JPY38 billion (USD374 million), for the repayment of the bridge loans used to acquire five Class-A properties for approximately JPY45.5 billion (USD448 million). The properties will be acquired from Prologis' wholly owned Japan portfolio.
The assets, totalling approximately 2.4 million square feet (222,037 square meters), were offered to NPR through its sponsor support agreement with Prologis. The acquisition is expected to close on 1 September in Japan.
"This acquisition aligns with NPR's investment strategy," says Gary Anderson, CEO, Prologis Europe and Asia. "NPR will further strengthen its existing portfolio while creating additional unit holder value."
NPR is managed by a wholly owned subsidiary of Prologis.