Prologis to buy IPT for about $4 billion

Gina Ferazzi | Los Angeles Times | Getty Images

Prologis said on Monday it would buy Black Creek's Industrial Property Trust, a portfolio of U.S. industrial properties, in an all-cash deal valued at about $4 billion.

The company said the deal, which consists of 37.5 million square feet of industrial holdings with 236 properties, expands its footprint in Southern California, the San Francisco Bay area, Chicago, Atlanta, Dallas, Seattle, and New Jersey.

Prologis expects the deal to add to its annual core funds from operations by about 5 to 6.1 cents on a per share basis.

The deal is expected to close around late this year or early next year.

Morgan Stanley and Eastdil Secured are the financial advisers to IPT while Hogan Lovells served as the legal adviser, real estate investment firm Black Creek, which created IPT in 2012, said in a separate statement.

Prologis also reported a 14.7% rise in second quarter net income attributable to shareholders to $383.8 million. On a per share basis, it earned 60 cents in the quarter ended June 30 and raised its 2019 profit outlook to $2.38 to $2.46 per share from $2.08 to $2.18 per share.

"We continue to see healthy market conditions, robust customer demand and rent growth that has exceeded our expectations," said Prologis' Chief Financial Officer Thomas Olinger.

The company raised its annual forecast for its core funds from operations to be in the range of $3.26 to $3.30 per share from $3.20 to $3.26 per share. The forecast does not include the impact of the proposed deal.