ProLogis ‑ the world’s biggest logistics landlord ‑ has acquired distribution-focused US REIT Catellus for $4.9bn (£2.6bn).
The merger between two of the largest developers in the US was agreed unanimously by both boards. Ted Antenucci, president of Catellus, has been appointed president of global development at the merged company.
Catellus owns 40.5m sq ft of commercial property, of which 90% is industrial. The combined company will control over 350m sq ft in over 2,250 locations in North America, Europe and Asia, together with a further 100m sq ft of developable land.
Jeffrey H Schwartz, ProLogis’s chief executive officer, said: “This transaction dramatically changes the landscape of the US industrial real estate market by consolidating two of the largest property developers in North America.
“In the US, Catellus’ operating portfolio is a strong complement to our properties. The average age of the developments is only 7.2 years and most are situated in outstanding locations in the premier distribution markets.
Catellus shareholders will be entitled to either $33.81 (£18.47) or 0.822 of a ProLogis common share for each share. The agreement specifies that 65% of the Catellus shares will be exchanged for ProLogis shares and 35% will be exchanged for cash.
Catellus owns a number of high-profile distribution units in the hubs of Northern California, Chicago, Dallas and Denver, together with mixed-use schemes in major West Coast cities and a 370,000 sq ft office block in downtown Chicago.
It was formed in 1984 to manage the non-railroad activities of the Santa Fe Railroad Group, and inherited developable property around the major US transportation corridors. It became a REIT in January 2004.
References: EGi News 06/06/05
