Prologis Closes Its Most Strategic Deal in Seven Years
Company finalizes its Duke Realty acquisition.
In what the company calls its biggest and most strategic acquisition in seven years, Prologis on Monday announced the completion of its all-stock acquisition of Duke Realty Corporation following approval by the shareholders of Prologis and Duke Realty.
The deal is valued at approximately $23 billion, including the assumption of debt, and the completed transaction expands Prologis’ presence in key U.S. markets.
Tim Arndt, Chief Financial Officer at Prologis, tells GlobeSt.com that he’s excited about the opportunities the Duke Realty acquisition brings to the company.
“Integrating the Duke portfolio and talent into our company strengthens Prologis,” Arndt said. “Our combined company has an even better portfolio, offers more choice for our customers and we’re even in a better place to grow our related businesses, including our Strategic Capital and Essentials businesses.”
He added, that Prologis’ experience integrating companies “served us well and we’ll start to create shareholder value immediately. Our teams are in the market this week, visiting our new customers and introducing them to the wide array of services and solutions we deliver.”
Brett Turner, senior managing director, acquisitions & dispositions, bkm Capital Partners, tells GlobeSt.com, “This acquisition demonstrates the continued belief in the industrial asset class by some of the smartest people in the business. Fundamentals have never been better and while the capital markets have shown signs of turmoil, creative players can still get large deals done.”
Prologis Adds 500 New Customers, Place in Savannah
In the acquisition, Prologis gains roughly 500 customers over 142 million square feet of fully operational logistics buildings in 19 major U.S. markets, including Southern California, New Jersey, South Florida, Chicago, Dallas and Atlanta; and 7 million square feet of buildings under development; approximately 17 million square feet of developable land.
It also enables the company to expand its presence into Savannah, Ga, the fourth-largest U.S. gateway for container imports.