The deal consists of all of Duke’s belongings and shares.
Following approval by the shareholders of each companies, Prologis has closed on its all-stock, debt-assuming acquisition of Duke Realty Corp. The deal, valued at $23 billion, consists of Duke’s full 142 million-square-foot funding, administration and improvement portfolio, which encompasses 480 buildings and 500-customers.
The newly acquired array of Duke logistics properties will considerably increase Prologis’ 1 billion-square-foot portfolio of warehousing and logistics amenities. The bodily belongings are positioned in 19 main U.S. industrial markets, together with Southern California, Dallas, Atlanta, Chicago, South Florida and New Jersey. Prologis will even purchase Duke’s 7 million-square-foot improvement pipeline, which spans 1,228 acres and 17 million sq. ft of developable land. All the purchasers being newly onboarded and managed by Prologis can have entry to the agency’s proprietary Prologis Necessities service, which supplies each provide chain and sustainability-related industrial and logistics options to tenants. Moreover, Prologis will combine the belongings into its Strategic Capital co-investment platform, along with equipping the amenities with brand-standard facilities resembling rooftop photo voltaic panels.
Prologis CEO Hamid Moghadam acknowledged the worth and significance of the acquisition, saying in ready remarks, along with the day-one accretion and avenues for additional earnings development, this acquisition provides us a fair stronger capacity to help our clients and their development.
Prologis’ speedy tempo of acquisitions
The acquisition of Duke Realty is Prologis’ by far the biggest enterprise-level transaction in the course of the previous 4 years, following its $3 billion acquisition of Liberty Property Belief in February of 2020, in addition to its $8.5 billion buy of DCT Industrial Belief in 2018.
Goldman Sachs and Citigroup served as monetary advisors to Prologis, whereas Wachtell, Lipton, Rosen & Katz acted as authorized advisors. Morgan & Stanley Co. and J.P. Morgan Securities, in addition to Hogan Lovells US and Alston & Fowl LLP served the identical roles respectively for Duke. Following the completion of the sale, Duke Realty Chairman & CEO James Connor has been appointed to the Prologis Board of Administrators.