Prologis – the new company created following ProLogis’ merger with AMB Property in June – has divested a portfolio of eight wholly-owned industrial assets in Korea, as well as its 20 percent interest in the ProLogis Korea Fund, for $65.5 million. Prologis declined to disclose the name of the buyer.
“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 Anderson, Prologis’ chief executive for Europe and Asia, in a statement. “The sale of one of our Korea portfolios and the interest in the Korea fund touches all three strategic priorities.”
Launched in 2007, ProLogis Korea Fund is a closed-end vehicle with a total expected capitalisation of approximately $500 million and an initial term of 15 years. At the time of the sale, the fund comprised 12 properties totaling 1.7 million square feet. Meanwhile, the eight-property portfolio encompasses four buildings totaling 424,787 square feet and 37 acres of land.
Following the disposition, Prologis’ remaining real estate holdings in Korea consist of three buildings that total 594,000 square feet and that were fully leased as of 30 June. The sale obviously raises questions as to whether the firm plans to exit Korea, but Prologis declined to comment on its future in the market.