A joint venture between US logistics giant Prologis and Norwegian state fund manager NBIM has agreed to buy the real estate assets and operating platform of US industrial giant KTR Capital Partners and its affiliates for $5.9 bn (€5.5 bn).
A joint venture between US logistics giant Prologis and Norwegian state fund manager NBIM has agreed to buy the real estate assets and operating platform of US industrial giant KTR Capital Partners and its affiliates for $5.9 bn (€5.5 bn).
The properties are held by KTR's three co-investment funds and will be acquired by Prologis US Logistics Venture (USLV), a 55-45 consolidated joint venture with Norges Bank Investment Management (NBIM), manager of the Norwegian Government Pension Fund Global.
'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,' commented Hamid Moghadam, chairman and CEO of Prologis. 'I have known KTR's leadership for 15 years and have always considered them to be astute investors and one of our toughest competitors in the US.'
Moghadam added: 'This transaction will deliver accretive returns to our shareholders and will enhance our important and successful partnership with NBIM, which will now exceed $11 bn on two continents.'
The 60 million sq ft (5.5 million m2) operating portfolio comprises 322 properties and also includes 3.6 million sq ft of development-in-progress and a well-located land bank with a build-out potential of 6.8 million sq ft.
The transaction enhances the company's position in Southern California, New Jersey, Chicago, South Florida, Seattle and Dallas.
KTR focuses exclusively on the industrial property sector in North America. The company owns and operates a portfolio of nearly 70 million square feet in 25 markets. Since 1997, KTR has completed over $7 bn of acquisitions and development.
The deal will be financed partly through the assumption of $700 mln of secured mortgage debt and the issuance of up to $230 mln (less assumed liabilities) of common limited partnership units in Prologis to KTR. In addition, Morgan Stanley Senior Funding has committed to provide a $1.0 bn bridge facility.
The transaction is anticipated to close in the next 30-60 days and is subject to customary closing conditions.
