ProLogis has secured three loans valued at $347 million to help pay off debt due to mature this year.
The Denver-based industrial developer and fund manager said the loans, provided by two life insurance companies, would be used to repay credit line facilities as well as refinance the remaining $285 million of 2009 maturities.
Two of the three loans, totalling $245 million, were 10-year, interest-only financing, secured by 50 properties. The remaining $102 million loan is a five-year, interest-only deal secured against 14 properties. The average interest rate is 7.24 percent.
The firm has been aggressively deleveraging its portfolio over the past year. It raised $1.35 billion by selling its China operations and Japan fund interests to the Singapore sovereign wealth fund, GIC Real Estate. It also sold is Tokyo industrial park, Misato II, to GIC Real Estate for $140 million.
In a statement, ProLogis said it would have $11 billion of “unencumbered assets” following its planned asset sales, fund contributions and today’s debt refinancing.