A Prologis holding. Photo by Prologis.

DENVER and SAN FRANCISCO—Prologis and Denver-based Black Creek Group have come to an agreement in which Prologis will buy Black Creek's investment platform Industrial Property Trust in an all-cash transaction of $3.99 billion.

The deal includes 236 properties located across 24 geographic areas, or put another way, 37.5 million square feet of industrial holdings that are currently 96% leased. The deal does not include IPT's minority ownership interests in its two unconsolidated joint venture partnerships. IPT's board of directors have approved the transaction.

Prologis expects to capture significant cost and revenue synergies from the transaction, according to Eugene F. Reilly, chief investment officer. Specifically, it will expand the REIT's position in Southern California, the San Francisco Bay Area, Chicago, Atlanta, Dallas, Seattle and New Jersey. Following the closing, Prologis intends to hold the portfolio through either one or both of its US co-investment ventures. In addition, Prologis says it does not expect to add any corporate overhead and, as a result, the transaction is expected to lower general and administrative expenses as a percentage of assets under management by approximately 4%.