Global logistics real estate company Prologis Inc. has signed a definitive merger agreement to acquire the wholly-owned real estate assets of Industrial Property Trust Inc. (IPT), Denver-based Black Creek Group’s industrial real estate investment platform, for approximately $3.99 billion in a cash transaction, including the assumption and repayment of debt.
Industrial Property Trust Inc. (Industrial Property Trust or IPT) operates as a real estate investment trust (REIT) that acquires and operates high-quality distribution warehouses that are leased to corporate customers.
This overall transaction represents:
• 236 properties located across 24 geographic areas
• 37.5 million square feet of industrial holdings that are currently 97% leased
The transaction, currently expected to close in the fourth quarter of 2019/first quarter of 2020, is subject to the approval of IPT stockholders and other customary closing conditions.
Specifically, the transaction expands the Prologis’ position in Southern California, the San Francisco Bay Area, Chicago, Atlanta, Dallas, Seattle and New Jersey.
“We are off to an excellent start to the second half of the year as we’ve just entered into an agreement to acquire IPT,” said Hamid R. Moghadam, chairman and CEO, Prologis. “The acquisition of this high-quality portfolio will deliver additional shareholder value immediately upon close.”
“We believe this transaction makes sense for our investors as we want to deliver shareholder returns that maximize the current economic environment. The industrial sector continues to be one of the strongest in commercial real estate with record low vacancies and demand outpacing supply. Given the strength of the sector, not only do we plan to continue to develop and acquire assets for other portfolios but create products that make sense for investor needs and the market cycle,” said Raj Dhanda, chief executive officer, Black Creek Group.
“This is a compelling opportunity to acquire a portfolio of excellent asset quality and submarket composition consistent with our U.S. investment strategy and footprint,” said Eugene F. Reilly, chief investment officer, Prologis.
“We expect to capture significant cost and revenue synergies, in addition to enhancing customer relationships and insights,” he added.
Morgan Stanley & Co. LLC and Eastdil Secured, L.L.C. are acting as financial advisors to Industrial Property Trust Inc. (IPT). CBRE, Inc. is acting as real estate advisor to IPT. Hogan Lovells is acting as legal advisor to IPT.