Dealmaker: Prologis to Acquire Industrial Property Trust in $3.9B Transaction

Prologis, San Francisco, agreed to purchase Industrial Property Trust from Denver investment manager Black Creek Group for $3.99 billion.

The transaction includes Industrial Property Trust’s 236 properties in 24 metros totaling 37.5 million square feet of industrial holdings, which are currently 97 percent leased. It does not include IPT’s minority ownership interests in two unconsolidated joint venture partnerships.

Both firms expect the transaction to close in the fourth quarter or in early 2020.

Morgan Stanley & Co. LLC and Eastdil Secured LLC acted as Industrial Property Trust’s financial advisors. CBRE Inc. served as IPT’s real estate advisor and Hogan Lovells was legal advisor to IPT.

Prologis Chief Investment Officer Eugene Reilly called the purchase an opportunity to acquire a portfolio of assets in markets consistent with Prologis’ investment strategy and footprint. The transaction expanded the firm’s position in southern California, the Bay Area, Chicago, Atlanta, Dallas, Seattle and New Jersey.

Black Creek Group CEO Raj Dhanda noted the industrial sector is 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 [seek to] create products that make sense for investor needs and the market cycle,” he said.

In May Prologis bid unsuccessfully on 179 million square feet of urban infill logistics assets owned by Global Logistic Properties, Singapore. Blackstone, New York, acquired that portfolio for $19 million.