Prologis has bought US industrial property specialist KTR Capital Partners for $5.9bn (£3.9bn) in a joint venture with Norges Bank Investment Management.
The deal includes 60m sq ft of assets in the US, the majority of which are in southern California, New Jersey, Chicago, south Florida, Seattle and Dallas. It also includes 3.6m sq ft of ongoing development and a land bank with potential for 6.8m sq ft of further development.
The deal will involve the assumption of around $700m of debt. Prologis has obtained a $1bn bridge facility for the transaction from Morgan Stanley. The deal is expected to close in the next 30-60 days.
The 55:45 joint venture between Prologis and Norges mirrors their 2013 tie-up in Europe, which saw them enter a €2.4bn joint venture that held 49m sq ft of assets. At the beginning of last year they also structured a $1bn deal for assets in the US.
Hamid Moghadam, chairman and chief executive of Prologis, said: “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.
“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 US.”
Eastdil Secured advised KTR.
