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Prologis (PLD) in Talks to Buy Black Creek's IPT for $4 Billion

The 37.6-million-sq.-ft. Industrial Property Trust portfolio is 96 percent leased.

(Bloomberg)—Prologis Inc. is in talks to buy warehouse owner Industrial Property Trust for about $4 billion, according to people with knowledge of the matter.

The San Francisco-based real estate investment trust may announce the deal as soon as Monday, said the people, who asked not to be identified because the matter is private. IPT, a nontraded real estate investment trust, was put on the block in February by its owner Black Creek Group LLC, Bloomberg reported at the time. Representatives for IPT didn’t immediately respond to requests for comment. A Prologis spokesperson declined to comment.

The IPT portfolio, with an average age of 20 years, is 96% leased and has a total of 37.6 million square feet (3.5 million square meters), Bloomberg has reported. While tenants include Amazon.com Inc. and FedEx Corp., no single occupant accounts for more than 3% of IPT’s annualized base rent.

Warehouses and logistics are an increasingly favored sector of the real estate market, in part due to strong growth and occupancy rates. Demand from corporations stems from a necessity to meet customer expectations for faster delivery times. The growth of e-commerce would likely insulate the sector from some of the impact from the Trump administration’s tariffs on goods from China, analysts from Green Street Advisors said in May.

Prologis was among bidders vying to own GLP Pte’s U.S. operations earlier this year, but was beaten out by Blackstone Group LP, which clinched the $18.7 billion deal. The warehouse owner, with a market value of about $51 billion, acquired DCT Industrial Trust Inc. last year for more than $8 billion, its second largest deal after merging in 2011 with AMB Property Corp.

To contact the reporter on this story: Gillian Tan in New York at gtan129@bloomberg.net.

To contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

Christine Maurus, Debarati Roy

© 2019 Bloomberg L.P.

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