Publications

Real Estate - JULY 16, 2019

Prologis acquires Black Creek Group investment platform for $4b

by Andrea Zander

Black Creek Group, a Denver-based real estate investment manager and development firm with a more than 25-year history, announced its sponsored investment platform, Industrial Property Trust (IPT), has entered into a merger agreement pursuant to which it will be acquired by an affiliate of Prologis in an all-cash transaction valued at approximately $3.99 billion, subject to adjustment for certain transaction costs.

The transaction will not include IPT’s minority ownership interests in its two unconsolidated joint venture partnerships. IPT’s board of directors unanimously approved the transaction.

“We believe this transaction makes sense for our investors as we want to deliver shareholder returns that maximize the current economic environment. The industrial sector continues to be one of the strongest in commercial real estate with record low vacancies and demand outpacing supply. Given the strength of the sector, not only do we plan to continue to develop and acquire assets for other portfolios but create products that make sense for investor needs and the market cycle,” said Raj Dhanda, CEO, Black Creek Group.

This overall transaction represents:

  • 236 properties located across 24 geographic areas
  • 37.5 million square feet of industrial holdings that are currently 97 percent leased

“This is a compelling opportunity to acquire a portfolio of excellent asset quality and submarket composition consistent with our U.S. investment strategy and footprint,” said Eugene F. Reilly, CIO, Prologis. “We expect to capture significant cost and revenue synergies, in addition to enhancing customer relationships and insights.”

 

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