ProLogis European Fund is to securitise its Garonor distribution park in Paris as part of a ¬144m issue.
France Industrial Properties No1 will be backed by income from properties on three sites in France with the bulk coming from its landmark Garonor distribution park at Aulnay, just south of Charles de Gaulle Airport in Paris.
Total floor area of the property at Garonor is 357,000m2 with further properties totalling 44,000m2 and 28,300m2 at Senart. Properties at Garonor account for 84% of the asset pool.
The properties, which do not include any recent developments by ProLogis, were valued by Jones Lang LaSalle at ¬245.1m.
Ratings agency Standard & Poor’s has assigned preliminary ratings of AAA and A to the bonds. The loan-to-value ratio is 48% at AAA level and 60% at A level.
Standard & Poor’s said that the portfolio had strong income diversity with the properties let to more than 200 tenants. No tenant accounts for more than 10% of the rental income.
This is ProLogis’ second securitisation. It raised ¬214m in the property industry’s first pan-European securitisation last May with an issue backed by income from properties in France, the UK and the Netherlands.
The ProLogis European Fund was formed with ¬1.07bn of equity raised from 16 institutions in 1999 to secure funding for the distribution giant’s expansion.
Société Générale is underwriter for the issue.
