Logistics real estate specialist Prologis has strengthened its US footprint with the acquisition of Industrial Property Trust’s (IPT) $4bn (€3.6bn) real estate assets.

Prologis, which manages $104bn assets in 19 countries, said it will buy the smaller real estate investment trust’s (REIT) assets in a cash transaction, including the assumption and repayment of debt.

According to Prologis, IPT’s 37.5m sqft operating portfolio comprises 236 properties, 96% of which are in existing Prologis markets.

The acquisition expands the company’s position in Southern California, the San Francisco Bay Area, Chicago, Atlanta, Dallas, Seattle and New Jersey, Prologis said.

Prologis said it intends to hold the portfolio through either one or both of its US co-investment ventures.

The latest acquisition follows the global logistics REIT’s acquisition of another smaller listed peer DCT Industrial Trust for $8.4bn in April last year, in a deal it said deepens its presence in high-growth US markets.

Eugene F Reilly, Prologis CIO, said the acquisition of IPT is a ”compelling opportunity to acquire a portfolio of excellent asset quality and submarket composition consistent with our US investment strategy and footprint”.

“We expect to capture significant cost and revenue synergies, in addition to enhancing customer relationships and insights.”

Thomas S Olinger, Prologis CFO, said: “We have worked diligently to create a balance sheet that allows us to take advantage of opportunities such as this, and we remain committed to maintaining our financial strength.

“This accretive transaction advances our strategy of using our scale to grow earnings with no incremental overhead.”