Partners
Our investment management business has been a major driver of growth over the last decade. Since 1999, we have grown this business to over $19 billion of assets under management, with property investments in Asia, Europe and North America. In doing so, we have developed strong relationships with some of the premier institutional investors in the world. This approach has allowed us to grow with less of our capital invested.
2009 was a real test for those companies operating investment management businesses. The financial crisis raised concerns about whether fund sponsors could maintain appropriate levels of leverage as property values declined. Just as we moved quickly to strengthen ProLogis’ balance sheet and smooth our debt maturity schedule, we also evaluated debt within our property funds and determined where recapitalization and refinancing was necessary. We entered into discussions with our fund partners regarding property valuations, debt maturities and market conditions to identify sensible solutions. In connection with these discussions, ProLogis and its partners contributed $870 million of equity to certain funds and used the proceeds to pay down debt and acquire properties. While we refinanced or extended approximately $3 billion of fund debt over the last 14 months, a small number of our funds remain overleveraged, and we continue to work with our fund partners to reduce debt and address future maturities.
Even though conditions remain challenging, there continues to be institutional capital on the sidelines, which is evidenced by the increased number of offers we are receiving on assets being marketed. Based on investor interest, we will look to actively grow our investment management platform in the years ahead. In this tougher market environment, we believe institutional investors increasingly will look to partner with strong operators with a focus on quality and co-investment. We believe our business model satisfies these objectives very well.
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