EDINBURGH ProLogis European Properties, a real estate fund that invests in industrial properties plans to raise as much as €829 million in an initial public offering.

ProLogis, based in Denver, will retain the 24 percent of ProLogis European Properties that it now owns and will manage the fund. But it will not divest any part of its holding in the share sale.  It will be the biggest IPO by a European real estate company since 1999, when Canary Wharf sold £600 million, or $1.1 billion, of shares. So far this year, at least 23 European property companies have sold shares to the public for the first time, raising a total of about $4.7 billion. Seven real estate IPOs were withdrawn in June and July after the markets collapsed in May.

Tightening vacancy rates and rising rents are pouring funds into commercial sectors.  Commercial real estate markets expect this.  

David Lereah, NAR's chief economist, said most commercial market fundamentals are solid. "Commercial real estate markets move in response to changes in fundamental demand, which remains solid as a result of sustained job creation and economic growth," he said. "Except for some weakness in the retail sector, the commercial market is benefiting from lower vacancies and higher rents."