Prologis, Inc. and
Liberty Property Trust announced that the two companies have entered
into a denitive merger agreement by which Prologis will acquire Liberty in an all-stock
transaction, valued at approximately $12.6 billion, including the assumption of debt. The
board of directors of Prologis and the board of trustees of Liberty have each unanimously
approved the transaction.
“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 transaction deepens Prologis’ presence in target markets such as Lehigh Valley, Chicago,
Houston, Central PA, New Jersey and Southern California.
The acquisition on an owned and managed basis comprises:
107 million square foot logistics operating portfolio; 87 percent overlap with key markets
5.1 million square feet of logistics development in progress
1,684 acres of land for future logistics development with build-out potential of 19.7
million square feet
4.9 million square foot oce operating and development portfolio
Prologis plans to dispose of approximately $3.5 billion of assets on a pro rata share basis. This
includes $2.8 billion of non-strategic logistics properties and $700 million of offce properties.
This transaction is anticipated to create immediate cost synergies of approximately $120
million from corporate general and administrative cost savings, operating leverage, lower
interest expense and lease adjustments. Initially, this transaction is expected to increase
annual core funds from operations* (Core FFO) per share by $0.10-$0.12. Upon stabilization
of the acquired development assets, completion of the planned non-strategic asset sales and
redeployment of the related proceeds, annual stabilized Core FFO per share is forecasted to
increase by an additional $0.04 per share for a total of $0.14-$0.16.
Source : Company