SAN FRANCISCO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that locally based Prologis Inc. has purchased its partners' 72% interest in Prologis Institutional Alliance Fund II. The move brought the entire 4.9-million-square-foot portfolio onto its balance sheet.
Prologis previously owned 28% of Alliance Fund II which launched in June 2001 and had reached the end of the venture's term. The portfolio includes 52 facilities located in seven global infill markets across the US. The majority of properties are in Southern California, the San Francisco Bay Area and New Jersey.
“This acquisition, approved by 100% of our partners, afforded them an expedient and cost-efficient exit from the fund at market value,” explains Hamid R. Moghadam, chairman and CEO, Prologis, in a statement. "April's follow-on offering provided us with the capital necessary to complete this strategic acquisition for our shareholders."
Further details were not disclosed by deadline but we will follow up as more information becomes available.
According to Prologis' Q1 report, as GlobeSt.com previously reported, the firm is “beginning to capitalize on growth opportunities.” According to Moghadam, “Real estate fundamentals are solid and demand for our product is leading to rental growth. For the first time in 17 quarters, rent change on rollovers is positive.”
Core funds from operations per fully diluted share was $0.40 for the first quarter compared to $0.40 for the same period in 2012. Net earnings per fully diluted share was $0.57 for the first quarter compared to net earnings of $0.44 for the same period in 2012. In both periods, net earnings for the quarter were principally due to gains on real estate transactions.
The firm plans to reveal second quarter results on July 24th.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
