Merger of Equals

ProLogis and AMB Property Corp announced yesterday that they will merge during the second quarter of 2011, bringing together a portfolio of $46B and 600M SF.
 
ProLogis CEO Walt Rakowich and AMB CEO Hamid Moghadamsay in this video that the merged companies will align and better utilize their asset bases, put $26B in private capital to work, and build one of the top balance sheets in the real estate world. Hamid comments that ProLogis' depth in Europe will be complemented by AMB's big South American presence. The merger will make the company the largest owner of industrial real estate in Chicago, but they'll still account for just 4% of the space in the marketplace, according to the Associated Press. Grubb & Ellis' Rene Circ says that in the short run, the merger will lead to more leasing as the two companies reconfigure their portfolios.

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