Prologis Buys KTR for $6B

The industrial world got shaken up this morning—Prologis signed a definitive agreement to purchase KTR Capital Partners and its affiliates. The $6B deal puts 60M SF under Prologis’ control. They’ll be owned by Prologis US Logistics Venture, a JV with Norges Bank Investment Management that will now consist of $11B across two continents. Prologis CEO Hamid Moghadam (pictured at REITWeek 2014) says KTR was one of his toughest competitors (if you can’t beat them, buy them); he’s known the KTR leadership for 15 years and liked the similarities in their market composition and asset quality.

The acquired portfolio—322 properties primarily in Southern California, New Jersey, Chicago, South Florida, Seattle and Dallas—includes 3.6M SF of development in progress and a land bank with a build-out potential of 6.8M SF. The transaction is expected to close in the next 30 to 60 days. Prologis had already started the year strong, with 96% overall occupancy in Q1, a 140 bps increase over Q1 ’14. Rents were up nearly 10%, including a 15% increase in its US portfolio. Pictured: Hamid with fellow Prologis execs Gene Reilly and Tom Olinger, and former CEO Walt Rakowich.

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