Logistics real estate company Prologis Inc. (NYSE: PLD) said late Wednesday it has completed its $4 billion all-cash acquisition of Industrial Property Trust Inc. (IPT).
The deal, announced in July 2019, called for San Francisco-based Prologis to acquire IPT equally through its two U.S. co-investment ventures. The 450-customer IPT portfolio comprises 37.5 million square feet and 236 properties. The two companies share 172 common customers, and 96% of IPT’s footprint at the time the deal was announced was in existing Prologis markets.
Prologis said the transaction will expand its position in Southern California, the San Francisco Bay Area, Chicago, Atlanta, Dallas, Seattle and New Jersey.
“This is a compelling opportunity to acquire a portfolio of excellent asset quality and submarket composition consistent with our U.S. investment strategy and footprint. We expect to capture significant cost and revenue synergies, in addition to enhancing customer relationships and insights,” said Prologis’ Chief Investment Officer Eugene F. Reilly at the time of the deal.
IPT was owned by Denver-based Black Creek Group LLC, a private-equity firm that focuses on real estate.
The IPT deal was nowhere near Prologis’ largest during 2019. In October, the company acquired Liberty Property Trust (NYSE:LPT) for $12.6 billion. The Liberty deal strengthened Prologis’ presence in Pennsylvania’s Lehigh Valley, Chicago, Houston, Central Pennsylvania, New Jersey and Southern California.