ProLogis European Properties, the biggest owner of warehouses in Europe, clashed with Dutch pension manager APG Groep NV over a proposal to change PEPR’s legal structure.
The fund, managed by Denver-based ProLogis, wants to be able to sell shares for less than the company’s net asset value to make it easier to raise money. If shareholders agree this month to change the fund’s legal structure to make this possible, it would “carry immediate financial risks,” APG said in a letter sent to PEPR Tuesday. APG manages the equivalent of $263 billion for Dutch pension fund Stichting Pensioengroep ABP, including PEPR stock.
“Change in the legal structure would restrict ProLogis European’s access to the revolving portion of the senior unsecured credit facility,” APG said in the letter. “Albeit limited, there is also the risk the conversion may be imperfect and could be challenged because corporate procedures have not been complied with.”
PEPR called an investor meeting for Sept. 30 to approve the change to the fund’s legal structure. APG, based in Heerlen, proposed that PEPR postpone the meeting until the fund provides “further clarity.”
