Black Creek Group’s Industrial Property Trust Platform to be acquired by Prologis for $3.99 Billion
July 16, 2019 | James Sprow | Blue Vault
Black Creek Group, a Denver-based real estate investment manager and development firm with a more than 25-year history, today announced its sponsored investment platform, Industrial Property Trust Inc. (IPT), a nontraded REIT, has entered into a merger agreement pursuant to which it will be acquired by an affiliate of Prologis, Inc. (NYSE: PLD) in an all cash transaction valued at approximately $3.99 Billion, subject to adjustment for certain transaction costs. The transaction will not include IPT’s minority ownership interests in its two unconsolidated joint venture partnerships. IPT’s board of directors unanimously approved the transaction.
“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 overall transaction represents
• 236 properties located across 24 geographic areas
• 37.5 million square feet of industrial holdings that are currently 97% leased
“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.”
According to Blue Vault, Industrial Property Trust, Inc., a nontraded REIT program which closed its public offering in June 2017 after raising approximately $1.76 billion, including DRIP proceeds, had a most recent net asset value per share of $12.33 as of November 30, 2018. The REIT had a total of 285 properties with 49.6 million square feet, including the two joint venture partnerships which are not part of the Prologis acquisition.
The value per share for IPT’s common shareholders and the expected consummation date for the portfolio sale to Prologis were not stated in the July 15 press release. The book value of the total IPT real estate portfolio as of March 31, 2019, was $2,665.7 million.
“In our more than 25-year history, we have delivered four full-cycle industrial portfolios and are excited to deliver another with this announcement. The transaction is a testament to our commitment to delivering high-quality products that create value for our investors,” stated Evan Zucker, principal, cofounder and managing partner, Black Creek Group.
Over Black Creek Group’s history, the firm has sponsored 24 investment platforms and has taken six platforms that span real estate asset classes full cycle through either a liquidity event or an IPO on the New York Stock Exchange.
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.
Source: Black Creek Group, Blue Vault
