ProLogis European Properties (PEPR), Europe’s largest owner of modern warehouse distribution facilities, will repay CMBS debt of €335.9 million ($433.10) on April 5, three months earlier than contractually required.

PEPR plans to use a combination of cash from operations and available capacity under its €900 million unsecured credit facility to complete the repayment, which is subject to customary closing conditions.

“We are pleased to be able to repay this CMBS debt early, demonstrating progress with our de-leveraging initiatives," said Peter Cassells, chief executive officer of PEPR. "We continue to make headway on our actions to strengthen the balance sheet and improve liquidity."

Cassells said that the early repayment will save PEPR over €1 million in interest expense this year and crystallize approximately €43 million of cash flow following the unwinding of related derivatives, proceeds from which will be used to fund this repayment.

It will also release some €550 million of secured properties, based on values last  Dec. 31, to its unsecured asset pool.

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