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Prologis to Buy Industrial Property Trust Portfolio from Black Creek Group

July 17, 2019

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.

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.