ProLogis to buy $1.8 billion portfolio from Dermondy/CalSTERS
Denver-Colo.-based industrial real estate giant ProLogis said Thursday it has formed a new North American property fund to acquire the portfolio of industrial assets from DP Industrial, a joint venture between private industrial developer Dermody Properties and CalSTERS, the California State Teachers Retirement System.
The total consideration is about $1.85 billion, including transaction costs.
The DPI portfolio acquisition includes 114 properties comprising 24.7 million square feet of distribution space in Reno and Las Vegas, Nevada; Eastern Pennsylvania; Chicago; and Tejon Ranch in Southern California, including 1.2 million square feet of construction in progress.
Also included are 518 acres of developable land that can accommodate up to 9.3 million square feet of future development. DPI will continue to operate as a private industrial property developer and will maintain its national headquarters in Reno.
The DPI portfolio will be purchased by the newly formed $1.8 billion ProLogis North American Properties Fund III. Affiliates of Lehman Brothers acted as advisor to the fund and provided debt and equity financing to the venture. ProLogis will retain a 20 percent equity interest in the fund as well as full ownership of the land acquired in the transaction.
ProLogis to buy $1.8 billion portfolio from Dermondy/CalSTERS
