Prologis has entered into a definitive merger agreement with Liberty Property Trust by which Prologis will acquire Liberty in an all-stock transaction, valued at approximately $12.6 billion, including the assumption of debt.
The board of directors of Prologis and the board of trustees of Liberty have each unanimously approved the transaction. Currently expected to close in the first quarter of 2020, the transaction is subject to the approval of Liberty shareholders and other customary closing conditions.
“Liberty’s logistics assets are highly complementary to our U.S. portfolio and this acquisition increases our holdings and growth potential in several key markets,” Hamid R. Moghadam, CEO and Chairman at Prologis.
The transaction deepens Prologis’ presence in target markets such as Lehigh Valley, Chicago, Houston, Central PA, New Jersey and Southern California.
“Liberty’s high-quality logistics real estate will strengthen our portfolio as well as our customer roster,” noted Prologis chief investment officer Eugene F. Reilly.
“The execution of this transaction is further evidence of the strength of Prologis’ balance sheet and will create significant additional capital from the future sale of the non-core assets. The combination of these portfolios will drive incremental Core FFO growth and long-term shareholder value, ” Thomas S. Olinger, Chief Financial Officer at Prologis said.