HOUSTON – Prologis Inc., one of the world’s largest industrial real estate firms, has agreed to acquire Liberty Property Trust in a $12.6 billion all-stock deal.
Both companies hold substantial assets in Houston. Prologis’ Houston office manages an 18.5 million-square-foot portfolio, while Liberty controls 69 buildings totaling 10.4 million square feet in the Houston area, according to the Houston Chronicle.
Headquartered in San Francisco, Prologis has expanded through recent acquisitions. Last year the company acquired DCT Industrial Trust, and it is currently in the process of acquiring Industrial Property Trust, which owns 22 buildings in Houston.
The boards of both Prologis and Wayne, Pa.-based Liberty Property Trust have approved the transaction. Liberty’s holdings include 107 million square feet of warehouse space, 5.1 million square feet of logistics space under development, 1,684 acres of land and nearly 5 million square feet of office space. In Houston specifically, Liberty owns 20 acres of developable land.
“Liberty’s logistics assets are highly complementary to our U.S. portfolio and this acquisition increases our holdings and growth potential in several key markets,” said Prologis chairman and CEO Hamid R. Moghadam. “The strategic fit between the portfolios allows us to capture immediate cost and long-term revenue synergies.”
The acquisition strengthens Prologis’ presence in target markets including Lehigh Valley, Chicago, Houston, Central Pennsylvania, New Jersey and Southern California.
The transaction is expected to close in the first quarter of 2020.
Oct. 29, 2019 Realty News Report. Copyright 2019.
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