https://nighthawkrottweilers.com/

https://www.chance-encounter.org/

Business

Prologis buys Liberty for $ 12.6 billion stock




Prologis, the world's largest warehouse company, has agreed to buy Liberty Property Trust for $ 12.6 billion in a deal that underscores the strong demand for such properties during the online shopping era. *

In an interview, Hamid Moghadam, Prologue's chief executive, pointed out the acquisition as a way to strengthen the company's presence in key US markets, including Pennsylvania, Houston and Orlando, at a time when high-quality storage is becoming scarce.

"We really believe that the supply of high-quality industrial property is limited," Moghadam said, adding: "It is becoming increasingly difficult to zone land for commercial use, especially near large urban areas."

The Share Agreement also includes the assumption of some debt, and approved by both boards, Prologis plans to eventually roll out about $ 3.5 billion of warehouse and office properties it doesn't consider strategic, and also projected $ 1[ads1]20 million in cost savings.

The deal comes at a time when industrial inventories – once a relative reflection of the real estate industry – have become among the hottest investments due to the increase in e-commerce, as consumers demand ever-faster deliveries for a growing menu of goods, top modern stores have close to major markets become important to retailers like Amazon, Target and many others.

Inventories are crucial in not only to deliver so-called "last mile" deliveries, but also to handle the huge volume of returns that are part of online shopping.

"The increase in the value of advanced warehouse facilities reflects the decline in the value of retail space," said Erik Gordon, a business professor at the University of Michigan.

"In a downturn, modern, well-located department stores will outperform most types of real estate."

In June, Blackstone, the private equity group, purchased the US portfolio of GLP, another stock company, for $ 18.7 billion dollars. At the time, Ken Caplan, Blackstone's co-head of real estate, called logistics "our highest conviction topic for global investment today."

Although questions revolve around the broader economy, Prologis recently raised its forecast for 2019 facility rental increases to 7 percent. The company recently opened a new two-story warehouse near Seattle – the first of its kind.

The Liberty deal comes at the height of Prologi's acquisition of another industrial property group, IPT, for around $ 4 billion in July. This agreement is still pending. It also bought other companies in the sector in 2015 and 2018. It can now boast about 900m square meters of warehouse property around the world.

Mr Moghadam acknowledged that reduced economic growth would inevitably have an impact on the stock industry. Still, he argued that the US-China trade war coped well with nervous companies storing goods.

"In the face of uncertainty, people must keep more stock," he said.

Under the agreement, Prologis offers Liberty investors 0.675 Prologis shares for each of its own – equivalent to a 21 percent premium from Friday's market close. BofA Securities and Morgan Stanley act as advisors.

* An earlier version of this story failed Liberty Property Trust



Source link

Back to top button

mahjong slot

https://covecasualrestaurant.com/

sbobet

https://mascotasipasa.com/

https://americanturfgrass.com/

https://www.revivalpedia.com/

https://clubarribamidland.com/

https://fishkinggrill.com/