Logistics real estate specialist Prologis has strengthened its US footprint with the acquisition of smaller rival Liberty Property Trust in a $12.6bn (€11.4bn) deal.
As part of an all-stock agreement, which includes the assumption of debt, Liberty shareholders will receive 0.675 of a Prologis share for each Liberty share they own, the companies said in a joint statement.
Liberty Property Trust is listed real estate investment trust that invests in office buildings and industrial properties, serving customers in the US and UK. The company owns 107m sqft logistics operating portfolio.
Prologis said the acquisition deepens its presence in target US markets such as Lehigh Valley, Chicago, Houston, Central PA, New Jersey and Southern California.
Prologis said it plans to sell $3.5bn of assets on a pro-rata share basis. This includes $2.8bn of non-strategic logistics properties and $700m of office properties.
Prologis chairman and CEO Hamid R Moghadam, said: “Liberty’s logistics assets are highly complementary to our US portfolio and this acquisition increases our holdings and growth potential in several key markets.
“The strategic fit between the portfolios allows us to capture immediate cost and long-term revenue synergies.”
Bill Hankowsky, Liberty Property Trust chairman and CEO, said: “The joining of these two platforms at this moment, when industrial logistics has become so pivotal to the new economy, will further the industry’s ability to support the nation’s supply chain and enhance value creation for our combined shareholders.”
The deal, which is expected to close in the first quarter of next year, is subject to the approval of Liberty shareholders.