Existing Fund investors participating in the second round capital raise represented 74% of the new equity, demonstrating their support of ProLogis' European strategy.

In addition, several new investors joined the Fund, including ATP (Denmark), IMMOWEST Immobilien Anlagen AG (Austria), Kommunernes Pensionsforsikring A/S (Denmark), and Metropolitan Life Insurance Co. (US).

Established in September 1999, the Fund has grown its base to approximately $2.8 billion in properties. Total capacity related to the second financing of the Fund, including ProLogis' expected equity investment and debt financing, is approximately $1.9 billion. Combining the existing fund capacity with the additional capital from the second raise and debt, the Fund has the ability to grow to more than $4.9 billion.

Proceeds will be used to purchase ProLogis' future stabilized European development properties as well as strategic acquisitions. The properties held in the Fund will be managed within the ProLogis Operating System under the existing management contract established at the Fund's inception.

ProLogis will continue to have the largest equity interest in the Fund, which was 30.3% at June 30, 2003, and is committed to maintaining a 20% minimum equity ownership in the Fund. The Fund plans to maintain its conservative capital structure with targeted leverage of 50%.

"From our first foray into Europe in 1997, our team of over 200 local nationals has built ProLogis into the leading pan-European provider of distribution space," says K. Dane Brooksher, ProLogis chairman and CEO. "With the establishment of the European Properties Fund in 1999, our presence increased from approximately 10 million sf in four countries to our current position of more than 41 million sf."

He says the "ongoing need for distribution network optimization and the expansion of the European Union continue to be key drivers of the demand for new distribution space."