As warehouse properties create lucrative opportunities for companies engaged in trade around the world, investors such as Brookefield Property Partners LP (BPY) and TPG Capital have been scrambling to act. San Francisco-based real estate giants Prologis Inc. (PLD) joined the bandwagon by inking a deal, worth $5.9 billion, for the real estate assets and operating platform of KTR Capital Partners. The deal will be executed by ProLogis U.S. Logistics Venture, in a consolidated joint venture with Norges Bank Investment Management (NBIM). The world’s largest industrial retailer and the manager of the Norwegian Government Pension Fund will become 55-45 owners of 3 of KTR’s co-investment funds, along with, 60 million square foot operating portfolio comprising 322 properties.
"It is rare to have the opportunity to acquire a portfolio of such high asset quality, customer profile and market composition that is so consistent with our own," said Hamid Moghadam, chairman and CEO, Prologis. "I have known KTR's leadership for 15 years and have always considered them to be astute investors and one of our toughest competitors in the U.S. This transaction will deliver accretive returns to our shareholders and will enhance our important and successful partnership with NBIM, which will now exceed $11 billion on two continents." Continue Reading »