NYSE-listed industrial real estate investment trust (REIT) Duke Realty has agreed to be bought by Prologis for $26bn (€24.2bn).

The companies said their respective board of directors have approved the transaction for Prologis to acquire Duke Realty in an all-stock transaction, including the assumption of debt.

Duke Realty shareholders are expected to receive 0.475x of a Prologis share for each Duke Realty share they own.

Prologis – which has a $93bn market capitalisation – owns or has investments in, on a wholly-owned basis or through co-investment ventures, properties and development projects expected to total approximately 1bn sqft in 19 countries. Duke Realty has approximately 160m sqft of industrial assets in 19 key US logistics markets.

Last month, NYSE-listed Prologis proposed to buy fellow industrial REIT Duke Realty in a $24bn deal. The offer followed an initial proposal Prologis made in November last year and a subsequent increase to the offer in early May which was rejected by Duke Realty.

Commenting on the agreed merger, Prologis co-founder, CEO and chairman Hamid R Moghadam said: “We have admired the disciplined repositioning strategy the Duke Realty team has completed over the last decade.

“They have built an exceptional portfolio in the US located in geographies we believe will outperform in the future. That will be fueled by Prologis’ proven track record as a value creator in the logistics space. We have a diverse model that allows us to deliver even more value to customers.”

Duke Realty chairman and CEO Jim Connor, said: “This transaction is a testament to Duke Realty’s world-class portfolio of industrial properties, long-proven success and sustainable value creation we’ve delivered over the years.

Tim Arndt, Prologis’ CFO, said: “This transaction increases the strength, size and diversification of our balance sheet while expanding the opportunity for Prologis to apply innovation to drive long-term growth.

“In addition to generating significant synergies, the combination of these portfolios will help us deliver more services to our customers and drive incremental long-term earnings growth.”

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