ProLogis Europe Floats at Nearly $4B

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AMSTERDAM-ProLogis European Properties has revealed a final offer price of euro 14.4 per ordinary unit for its IPO later this year. The pricing represents a total offer size of euro 650 million ($832.66 million) and will capitalize the company at euro 2.7 billion ($3.5 billion).

But all-in values could go even higher. In today’s Equity Research statement, Bank of America Securities’ Ross Nussbaum places valuation at nearly $6 billion.

Trading of the ordinary units on an “as-if-and-when-issued-or-delivered” basis started Friday on Amsterdam N.V.’s Eurolist. ProLogis, which will hold a 24% ownership stake in PEPR, will not sell any units in the IPO and it will be required to maintain a minimum stake of not less than 12.5% until June 2008 and not less than 10% after that.

PEPR owns 281 properties totaling 5.4 million sm of distribution sheds in 11 European countries. The IPO will be the largest float of European real estate shares since 1999, when Canary Wharf floated with a capitalization of euro 858 million ($1.1 billion).