Prologis buys stock rival Liberty for $ 12.6B
Axios retailer Erica Pandey reports that Long Island City is experiencing a business boom after Amazon decided to relocate its second headquarters to Queens.
Storage giant Prologis has agreed to acquire competitive industrial real estate business Liberty Property Trust in a $ 12.6 billion deal.
Prologis said Liberty shareholders would receive 0.675 times a Prologis share for each unit they own, about $ 61 per share. The agreement is expected to close in the first quarter of 2020.
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The move is expected to help expand Prology's presence in the United States as the e-commerce boom continues, adding to stocks in the Pennsylvania Lehigh Valley , Chicago, Houston, New Jersey and Southern California.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| PLD | PROLOGIS INC | 90.86 | -1[ads1].23 | -1.34% |
| LPT [19659012] LIBERTY PROP | 50.57 | -0.26 | -0.51% |
"Liberty's logistics funds are very complementary to our US portfolio and this acquisition increases our ownership and growth potential in several important markets," says Prologis CEO Hamid Moghadam. "The strategic fit between the portfolios enables us to capture immediate cost and long-term revenue synergies."
Prologis plans to sell assets for around $ 3.5 billion, including $ 2.8 billion in "non-strategic" logistics properties and $ 700 million of office properties, according to a statement.
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Prologis customers include, according to the website, Amazon.com, Walmart and FedEx Corp.
