July 17, 2019
Prologis to Buy Industrial Property Trust Portfolio from Black Creek Group

Prologis Inc. has agreed to buy real-estate investment trust and warehouse owner Industrial Property Trust in a deal valued...

Prologis to Buy Industrial Property Trust Portfolio from Black Creek Group

July 15, 2019 | Patrick Thomas | Wall Street Journal

Prologis Inc. has agreed to buy real-estate investment trust and warehouse owner Industrial Property Trust in a deal valued at $3.99 billion including debt, the company said Monday.

The deal with IPT includes an operating portfolio of 236 properties and expands the company’s position in Southern California, the San Francisco Bay Area, Chicago, Atlanta, Dallas, Seattle, and New Jersey. The transaction is expected to close in the fourth quarter of 2019 or early 2020. IPT is owned by Denver-based Black Creek Group LLC, a private-equity firm that focuses on real estate.

San Francisco-based Prologis is one of the largest industrial real-estate investment trusts, with a market capitalization of roughly $50 billion and a portfolio of 786 million square feet. The company has been an aggressive acquirer, such as buying DCT Industrial Trust Inc. last year for about $8.5 billion, including debt.

The growth of e-commerce and same- or next-day shipping has generated demand for industrial real estate in logistics hubs near big cities around the country. Blackstone Group LP outbid Prologis earlier this year for a network of U.S. industrial warehouses from Singapore-based GLP for $18.7 billion, The Wall Street Journal previously reported.

“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,” Prologis Chief Investment Officer Eugene Reilly said.

The deal was earlier reported by Bloomberg on Monday. Prologis said the deal is expected to add roughly 5 cents to 6 cents a share in core funds from operations on an annual basis.

Black Creek Group said the deal will help 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.” Black Creek Group Chief Executive Raj Dhanda said.

Recent

ExchangeRight’s Essential Income REIT Now Tracked by Blue Vault

ExchangeRight’s Essential Income REIT Now Tracked by Blue Vault

Warren Thomas, a managing partner at ExchangeRight, shared that this reporting relationship will help educate advisors about the Essential Income REIT's successful performance to date, broadening its reach to more investors who need the kind of stable income that the REIT has historically generated.

Most Popular

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 10-3-2023 Blue Vault wishes to acknowledge and apologize for the delay in publishing some Q2 2023 NTR Individual Performance Pages (IPPs) as well as the full review. We recently added additional reporting metrics to our IPPs, and that, combined with coverage of all share classes and some additional…
Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 9-25-2023 Blue Vault has published the Q2 2023 Nontraded BDC Industry Review as well as Individual Performance Report and Limited Operations pages for the following offerings (newly published pages in bold font): Nontraded REITS American Healthcare REIT Q2 2023 Apollo Realty Income Solutions Q2 2023 (limited operations) Ares…

Explore

Blue Vault Logo
Don’t miss alts news
and educational events

Subscribe Now