Luxembourg - 24 August 2011 - ProLogis European Properties (Euronext: PEPR), one of Europe's largest owners of modern distribution facilities, announced today that it will offer up to €97.5 million of new Ordinary Units.

The offering comprises the issue of up to 15,725,000 new Ordinary Units on a pro rata basis to existing holders of Ordinary Units that are known to the Management Company and hold a stake in excess of 1% of the Ordinary Units. The Ordinary Units will be offered at €6.20 per unit, equal to the recent tender offer price and a 10.1% premium to PEPR's IFRS net asset value per ordinary unit as at 30 June 2011. The offer is expected to commence on 29 August 2011 and end on 2 September 2011.

Prologis, Inc. (NYSE: PLD) has provided an irrevocable undertaking to subscribe to the offer in relation to its 92.6% holding in PEPR and to increase its subscription to up to 100% of the offer depending upon the take-up of new Ordinary Units by other Unitholders. Net proceeds of the offering will be used to accelerate deleveraging of the business, resulting in a significant improvement in PEPR's financial metrics. PEPR's pro-forma loan-to-value ratio will decrease to 47.8% from 51.1% as at 30 June 2011. Following completion of the offer, PEPR intends to continue to retain distributable cash flow for the foreseeable future to further delever the business to a more conservative level.

Peter Cassells, chief executive officer of PEPR commented "Over the last three years, we have taken numerous steps to delever the business, including selling assets, issuing preferred equity and retaining distributable cash flow. This offering will enable us to further strengthen our balance sheet, in line with our stated objective to return to an investment grade credit rating. Against this backdrop, the Management Company and the PEPR Board have concluded that the issue of new Ordinary Units is in the best interests of PEPR and all its Unitholders."

A supplement to the prospectus dated 13 November 2009 as amended by the supplements dated 23 August 2010 and 1 November 2010 (the "Prospectus") that sets out, amongst other changes to the Prospectus, the terms of the offer, has been approved by the Commission de Surveillance du Secteur Financier and will be made available on PEPR's website, www.prologis-ep.com.


PEPR upgraded to investment grade credit rating
Luxembourg - 24 August 2011 - ProLogis European Properties (Euronext: PEPR), one of Europe's largest owners of modern distribution facilities, announced today that Moody's Investors Service ("Moody's") has upgraded PEPR's corporate credit rating to Baa3, with stable outlook, from Ba1.

Moody's state "The rating upgrade to Baa3 was prompted by PEPR's announcement that it is issuing EUR97.5 million of new ordinary units (equity) and that its controlling unitholder, Prologis (PLD, Baa2 stable), has irrevocably committed to buy up to 100% of the issue. As a result, Moody's deems the execution risk as minimal for this transaction."

This upgrade immediately reduces the borrowing margin of the €280 million senior unsecured credit facility to +245 basis points over Euribor/Libor (from +270 basis points) and the margin on the €50 million unsecured revolving credit facility to +225 basis points (from +240 basis points). More significantly, the interest rate on PEPR's €500 million Eurobond will decrease by 1.75% to 5.875% (from 7.625%) on the 23 October annual reset date, resulting in a material interest expense saving.

Peter Cassells, chief executive officer of PEPR, commented "We are delighted that Moody's has recognised the progress we have made in improving our capital structure. The return to investment grade was a key management objective as it results in annual interest savings in excess of €8.6 million for the business and provides access to a broader unsecured debt capital market for future debt refinancing."

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