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Pro Logis PPT

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Pro Logis PPT

  1. 1. ProLogis MexicoIndustrial Fund I, LP $500,000,000 August 2006 0 21775-n
  2. 2. Unique Investment Opportunity Reynosa Industrial Center #4 ReynosaProLogis-Sponsored Mexico Focused Leading global owner, operator, and developer of industrialIndustrial Fund facilities; significant and expanding presence in Mexico over the past 10 yearsCompelling Mexico Fundamentals Well-established institutional investment, open and growing economy, strong demographicsStrategic Industrial Market Proximity to U.S., low labor costs, multinational corporate presenceImmediate Capital Deployment Approximately $500 million of identified stabilized assets expected to be contributed within first yearSignificant Investment Pipeline Exclusive access to ProLogis’ stabilized development pipeline and acquisition opportunities in target markets throughout Mexico1Attractive Risk-Adjusted Returns 8% average cash yield and 12% leveraged IRR, net to Investors2 1 During the investment period, subject to limited exceptions. 2 There can be no assurance that the Fund’s return objectives will be achieved. Please refer to the Memorandum for additional information, including a description of significant risk factors and potential conflicts of interest. 1 21775-n
  3. 3. ProLogis – Strong Sponsorship Colonial Industrial Center #1 Reynosa Asia North America Europe 89 facilities 1,946 facilities 366 facilities 29 msf 295 msf 80 msfA Global Platform Expertise in Fund Management $24.8 billion of total assets owned, under $11.5 billion of assets under management in development, or under management globally property funds globally Over 2,400 distribution facilities in 81 markets 31 distinct institutional capital relationships Nearly 4,700 customers (several in multiple funds) Over 1,100 ProLogis associates globally Solid and consistent operating and investment performance 2 21775-n
  4. 4. Compelling Mexico Fundamentals1 Monterrey Industrial Center #1 Monterrey Large Population 11th largest worldwide (107.4 million) Young Labor Force Average age of 25.3 yearsEconomic Drivers Highly Educated Labor Force 92.2% literacy rate Low Cost of Labor Manufacturing wage $2.13/hr Cost/Time to Market Proximity to U.S. and efficient shipping2 Trillion Dollar Economy 11th largest worldwide ($1.1 trillion GDP)3 3rd Fastest Trade Growth4 11%+ CAGR since 1990Economic Results 3rd Highest FDI5 Average $14.4 billion per year since 1994 Decreased Risk Premium Sovereign debt spread 138 bps (88% decrease over the past 8 years)6 Political and financial reforms have opened Mexico’s economy, increased trade, encouraged investment and provided stability 1 Sources: Bloomberg, CIA World Factbook, EIU, Institute of International Finance, OECD, UN, UNCTAD, US Department of Labor. 2 Cost to ship a 40 foot container to the U.S. $1,750 for Mexico vs. $4,300 for China. 3 GDP at purchasing power parity. 4 From 1990-2005. Latest date information available for the 15 largest countries in terms of international trade. 5 Foreign direct investment as of 2004, out of all developing counties. 6 As of 6/30/06. Sovereign debt spread was 1,160 bps on 9/11/98. EMBI+ bond index represents a basket of Mexico sovereign 3 debt vs. a basket of U.S. sovereign debt. 21775-n
  5. 5. ProLogis’ Experience in Mexico Independencia Industrial Center #3 Juarez ProLogis Mexico Investment1 Significant Experience in Mexico ($ millions) • Presence in Mexico for over 10 years $600 • Customer-driven expansion $500 • 70 employees in 5 regional Mexican offices $400 • Approximately 11 mm sf in 6 markets $300 $200 ProLogis’ Competitive Advantage $100 • Leading market share $0 • Superior customer service vs. local players 1997 1998 1999 2000 2001 2002 2003 2004 2005 2Q06 Acquisition Development • U.S. quality construction / design standards • Global customer relationships Development Market Share2% of New Developments Two Tier Operating and Investment Strategy 20% • Northern Mexico – Manufacturing/assembly 16% • Central Mexico – Distribution 12% Proven Fund Results in Mexico3 8% • 3 Yr. average occupancy 95.8% 4% • Unrealized unleveraged IRR4 14.8% 0% • Unleveraged cash yield5 10.6% PLD CPA American Ind InterMex 1 Portfolio as of 2Q06. Data does not include properties under construction or currently in-planning. 2 Source: ProLogis estimates based upon new construction starts over a three year period. Data excludes markets in which ProLogis has recently entered within the last twelve months (Guadalajara and Mexico City). 3 Based on ProLogis North American Fund V’s Mexico assets’ performance as of June 30, 2006. Prior performance is not indicative of future results of the Fund. 4 Annual compounded pre-tax property-level internal rate of return on an unleveraged basis. All cash flows assumed to occur 4 quarterly with an assumed liquidation date of June 30, 2006. 5 Property-level cash distributions to investors divided by time-weighted equity on a quarterly basis since inception. 21775-n
  6. 6. Premier Mexico Industrial Portfolio Reynosa Industrial Center #2 ReynosaTijuana Mexicali ProLogis Mexico Industrial Fund I to Juarez benefit from: • Exclusive Access to ProLogis’ Institutional Quality Industrial Assets Chihuahua Reynosa • Identified Deployment of Capital Monterrey Approximately $500 million to be Saltillo Matamoros contributed to the Fund in the first twelve months San Luis Potosi Approximately $900 million of Guadalajara Queretaro pre-identified assets Mexico City • Quality Land Positions Fuel Pipeline Initial Portfolio Toluca Current Development Currently control 432 acres that In-Planning Development can support 8.1 million buildable Land Positions square feet Additional Target Market Access to diversified institutional quality Mexico industrial assets 5 21775-n
  7. 7. Fund Investment Pipeline Del Norte Industrial Center #1 Reynosa Fund Investment Pipeline1 ($ and sf 000’s) Initial Portfolio Central Northern Pre- In-planning Mexico Mexico Stabilized Development 2 Portfolio Portfolio Assets Starts Total Expected Contribution Timing Closing Closing <12 months 2008-2009 Square Feet Guadalajara 423 100 500 1,023 Juarez 596 538 1,265 2,399 Mexico City 1,471 1,991 1,800 5,262 Monterrey 389 712 1,382 2,483 Reynosa 1,176 668 1,266 3,110 Tijuana 738 738 Total Square Feet 1,894 2,161 4,009 6,951 15,015 Expected Valuation Range Low $110,000 $130,000 $230,000 $400,000 $870,000 High $120,000 $140,000 $260,000 $450,000 $970,000 Approximately $900 million of pre-identified assets expected to be contributed to the Fund during the Investment Period 1 There can be no assurance that the ProLogis In-Process Portfolio’s development starts or completions will be achieved. Please refer to the Memorandum for additional information, including a description of significant risk factors and potential conflicts of interest. 2 Pre-stabilized assets includes assets from the Central Mexico Portfolio, the Northern Mexico Portfolio and the ProLogis In-Process 6 portfolio. 21775-n
  8. 8. Attractive Investment Characteristics Monterrey Industrial Center #13 Monterrey High Quality Assets/Leases • Institutional quality assets (U.S. specifications and design) • New assets – 5 year average age • U.S. dollar denominated leases1 • Longer-term leases with rent increases 5 year average term; annual rent increases based on CPI Del Norte Industrial Center #2 Reynosa • Significant capital investment by customers High Barriers-to-Entry • Difficult zoning, entitlement process • Land constraints • Significant infrastructure investment Reynosa Industrial Center #1 Reynosa 1 91.0% of Initial Portfolio has U.S. dollar leases or is indexed to the U.S. dollar. Calculated as a percentage of base rent. 7 21775-n
  9. 9. Summary of Terms Monterrey Industrial Center #3 MonterreyFund: ProLogis Mexico Fund I, LPTarget Initial Offering Size: $500 million of equity (including ProLogis’ investment)ProLogis Co-Investment: 20% of total equity minimumTarget Investor Returns: 8.0% average cash yield and 12.0% leveraged IRR1Identified Pipeline: Approximately $500 million of stabilized industrial assets contributed within the first twelve monthsInvestment Period: Three yearsExclusivity: Exclusive access to ProLogis’ development pipeline (upon stabilization) and acquisitions in target markets throughout Mexico during investment periodLeverage: 55%-60% loan to valueAsset Management Fee: 0.50% of gross asset valueTerm: 10-year closed-end fundLiquidation Provision: Ability to extend term of Fund, with liquidity provided for Limited Partners not voting to extendIncentive Participation: 15% promote to ProLogis after Limited Partners achieve 10% leveraged IRRInitial Closing: December 2006 1 There can be no assurance that the Fund’s return objectives will be achieved. Please refer to the Memorandum for additional information, including a description of significant risk factors and potential conflicts of interest. 8 21775-n
  10. 10. Disclaimer – U.S. Los Aztecas Industrial Center #1 JuarezThis presentation does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein. Such offer orsolicitation will only be made by means of an offering memorandum and definitive documentation in a transaction exempt from theregistration requirements of the Securities Act of 1933, as amended. The offering memorandum (the “Memorandum”), which will besubsequently provided, describes risks related to an investment in the Fund as well as other important information about the Fund and itssponsor. The information contained in this presentation does not purport to be complete and is qualified in its entirety by the information setforth in the Memorandum, including, without limitation, the information in the “Risk Factors and Potential Conflicts of Interest” section of theMemorandum. You should carefully review the Memorandum in its entirety prior to investing in the Fund. In addition, each recipient shouldconduct its own independent investigation and assessment of the contents of this presentation and make such additional inquiries as it deemsnecessary or appropriate. This presentation does not constitute a part of the Memorandum.The information contained in this presentation is highly confidential. Except as required by law or regulatory requirements, by participating inthis presentation, you agree to maintain the confidentiality of the information contained herein and agree that you will not reproduce ordistribute such information to any other person or use such information for any purpose other than to evaluate your potential participation inan offering of the securities described herein.There can be no assurance that the targeted returns, results, diversification, capitalization or asset allocations will be met or that the Fundwill be able to implement its investment strategy and investment approach or achieve its investment objective. Actual returns oninvestments will depend on, among other factors, future operating results, the value of the assets and market conditions at the time ofdisposition, legal and contractual restrictions on transfer that may limit liquidity, any related transaction costs and the timing and manner ofsale.Statements contained in this presentation that are not historical facts are based on current expectations, estimates, projections, opinions andbeliefs of the general partner of the Fund. Such statements involve known and unknown risks, uncertainties and other factors, and unduereliance should not be placed thereon. Additionally, this presentation contains “forward-looking statements.” Actual events or results or theactual performance of the Fund may differ materially from those reflected or contemplated in such forward-looking statements. Certaineconomic and market information contained herein has been obtained from published sources prepared by third parties and in certain caseshas not been updated through the date hereof. While such sources are believed to be reliable, neither the Fund, its general partner, theadvisors, Macquarie Capital Partners LLC, nor their respective affiliates nor employees assume any responsibility for the accuracy orcompleteness of such information.This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. It does not take into accountthe investment objectives, financial situation and particular needs of the recipient. Each recipient should conduct its own independentinvestigation and assessment of the contents of this presentation and make such additional enquiries, as it deems necessary or appropriate.Unless stated otherwise, all information in this presentation is as of June 30, 2006. 9 21775-n
  11. 11. Disclaimer – Europe / Other Del Norte Industrial Center #1 JuarezThe information contained in this presentation is highly confidential. Except as required by law or regulatory requirements, by participating inthis presentation, you agree to maintain the confidentiality of the information contained herein and agree that you will not reproduce ordistribute such information to any other person or use such information for any purpose other than to evaluate your potential participation inan offering of the securities described herein without the prior consent in writing of Macquarie Capital Partners Limited (“MCP”).This presentation includes information obtained from publicly available material and from third party sources considered by MCP to bereliable. The Memorandum, which will be subsequently provided, describes risks related to an investment in the Fund as well as otherimportant information about the Fund and its sponsor. The information contained in this presentation does not purport to be complete and isqualified in its entirety by the information set forth in the Memorandum. Except as required by law, neither the Fund, its general partner,MCP, Macquarie Capital Partners LLC nor any of their respective affiliates, officers, employees, agents and consultants make anyrepresentation or warranty as to the accuracy or completeness of the contents of this document, and take no responsibility for any loss ordamage suffered as a result of any omission, inadequacy, or inaccuracy therein. Recipients acknowledge that circumstances may change andthe contents of this document may become outdated as a result.This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. It does not take into accountthe investment objectives, financial situation and particular needs of the recipient. Each recipient should conduct its own independentinvestigation and assessment of the contents of this presentation and make such additional enquiries, as it deems necessary or appropriate.There can be no assurance that the targeted returns, results, diversification, capitalisation or asset allocations will be met or that the Fundwill be able to implement its investment strategy and investment approach or achieve its investment objective. Actual returns oninvestments will depend on, among other factors, future operating results, the value of the assets and market conditions at the time ofdisposition, legal and contractual restrictions on transfer that may limit liquidity, and related transaction costs and the timing and manner ofsale.Statements contained in this presentation that are not historical acts are based on current expectations, estimates, projections, opinions andbeliefs of the general partner of the Fund. Such statements involve known and unknown risks, uncertainties and other factors, and unduereliance should not be placed thereon. Additionally, this presentation contains “forward-looking statements.” Actual events or results or theactual performance of the Fund may differ materially from those reflected or contemplated in such forward-looking statements. Certaineconomic and market information contained herein has been obtained from published sources prepared by third parties and in certain caseshas not been updated to the date hereof. While such sources are believed to be reliable, neither MCP, the Fund, its general partner,Macquarie Capital Partners LLC, nor their respective affiliates nor employees assume any responsibility for the accuracy or completeness ofsuch information.MCP is authorised and regulated by the Financial Services Authority (“FSA”).Unless stated otherwise, all information in this presentation is as of June 30, 2006. 10 21775-n
  12. 12. Disclaimer – Europe / Other Monterrey Industrial Center #2 MonterreyThe use of this presentation in certain jurisdictions may be restricted by law. Prospective investors in the Fund should inform themselves asto the legal requirements and tax consequences of an investment in the Fund within the countries of their citizenship, residence, domicile andplace of business.Important notice for prospective investors of Denmark:This presentation has not been filed with or approved by the Danish financial supervisory authority or any other regulatory authority in thekingdom of Denmark.The interests in the Fund have not been offered or sold and may not be offered, sold or delivered directly or indirectly in Denmark, unless incompliance with chapter 4 of the Danish act on investment associations, special-purpose associations and other collective investment fundsand executive order no 1178 of 10 December 2003 issued pursuant thereto on the marketing of units in certain foreign legal entities inDenmark.Important notice for prospective investors of France:Except pursuant to any available authorization or consent, the interests in the Fund are not being and may not be offered or sold in Franceand this presentation, or any information contained in this presentation or any offering material relating to the interests in the Fund, may notbe distributed or caused to be distributed in France.Important notice for prospective investors of Germany:The interests which are the object of this document are neither registered for public distribution with the Federal Financial SupervisoryAuthority (Bundesanstalt für Finanzdienstleistungsaufsicht - “Bafin”) according to the German investment act nor listed on a Germanexchange. No sales prospectus pursuant to the German sales prospectus act has been filed with the Bafin. Consequently, the interests maynot be offered to the public.Any resale of interests in the Federal Republic of Germany may only be made in accordance with the German sales prospectus act and anyother laws applicable in the Federal Republic of Germany governing the sale and offering of interests.Investors should be aware that there might be disadvantageous tax consequences when purchasing interests on a private placement basis. Indoubt, please consult your financial or tax adviser before purchasing the interests.Important notice for prospective investors of Japan:The Fund has not filed a securities registration statement for a public offering of interests in Japan with the director general of Kanto localfinance bureau of the Ministry of Finance of Japan. Therefore, the interests may not be offered or sold in Japan nor will any document ormaterials relating to the interests be distributed in Japan except pursuant to any exemption available under Japanese law and regulations. 11 21775-n
  13. 13. Disclaimer – Europe / Other Salvarcar Industrial Center #4 JuarezImportant notice for prospective investors of The Netherlands:The interests described herein are not and may not be offered, transferred, sold or delivered in The Netherlands as part of their initialdistribution or at any time thereafter other than to individuals or entities who or which trade or invest in investment objects in the conduct oftheir profession or trade within the meaning of Section 1 of the regulation dated 9 October 1990 regarding the implementation of Section 14of the Dutch Act on the supervision of collective investment schemes (“wet toezicht Beleggingsinstellingen”).Important notice for prospective investors of the United Arab Emirates:The interests and the Fund have not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities orgovernmental agencies in the United Arab Emirates. This document is strictly private and confidential and has not been reviewed, depositedor registered with any licensing authority or governmental agency in the United Arab Emirates, and is being issued to a limited number ofinstitutional investors and must not be provided to any person other than the original recipient and may not be reproduced or used for anyother purpose. The interests may not be offered or sold directly or indirectly to the public in the United Arab Emirates. 12 21775-n

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