ProLogis Wraps Up $157M Bond Financing

The bond was secured with the 1.2 million-square-foot Parc Zama I, located outside of downtown Tokyo. In 2010, just one year after its completion, the distribution facility reached the 100 percent occupancy level.

April 4, 2011
By Barbra Murray, Contributing Editor

Courtesy Flickr Creative Commons user apple 94

ProLogis continues to cultivate its relationships with Japanese lenders with its recent closing on a $157 million Tokutei Mokuteki Kaisha bond secured financing through a lender with which the industrial REIT has a previous relationship.

According to Japan’s Association for Real Estate Securitization, TMK is a tax-favored special purpose securitization vehicle that issues securities for purchase by investors investing proceeds from securities sales in real estate assets. “As a real estate acquisition structure, the TMK vehicle is very stable legally, enjoys good Japanese tax results, and is popular for those reasons,” tax and advisory firm PwC notes in a report.

ProLogis secured the bond, which has a seven-year maturity, with its 1.2 million square-foot Parc Zama I located 25 miles outside of downtown Tokyo. In 2010, just one year after its completion, the distribution facility reached the 100 percent occupancy level.

The REIT plans to pay down its global line of credit with proceeds from the financing, as it did when it closed two TMK bond secured financings totaling $122 million almost precisely one year ago. At the close of June 2010, ProLogis made a fourth amendment to its 2005 global senior credit agreement that, among other changes, reduced the total amount of the commitment to approximately. $2.25 billion.