Prologis and Norges Bank Investment Management have partnered to acquire the real estate assets of KTR Capital Partners for $5.9 billion. The properties will be acquired by Prologis US Logistics Venture, a 55-45 JV between it and the Norwegian government pension fund.
The two companies are acquiring a portfolio that encompasses 60 million square foot and is comprised of 322 properties. The properties are very complementary to Prologis’ existing holdings, the REIT says, enhancing in particular its footprint Southern California, New Jersey, Chicago, South Florida, Seattle and Dallas. The acquisition also includes 3.6 million square feet of development-in-progress and a land bank with a build-out potential of 6.8 million square feet.
“It is rare to have the opportunity to acquire a portfolio of such high asset quality, customer profile and market composition that is so consistent with our own,” said Hamid Moghadam, chairman and CEO of Prologis, in a prepared statement.
The transaction will deliver accretive returns to Prologis shareholders, Moghadam added. The deal also strengthens its partnership with Norges, “which will now exceed $11 billion on two continents,” he said.
The $5.9 billion transaction includes the assumption of approximately $700 million of secured mortgage debt and the issuance of up to $230 million of common limited partnership units in Prologis to KTR.
Follow up: Prior to the buyout of KTR, KTR purchased a portfolio of industrial properties from Alexandria Equities in South San Francisco, CA. The value of the portfolio was estimated at a total of $160/psf. Contact us for a list of the properties and additional information.