SAN FRANCISCO, Feb. 4, 2020 /PRNewswire/ -- Prologis, Inc.
(NYSE: PLD), the global leader in logistics real estate, today
announced that it has completed its all-stock acquisition of
Liberty Property Trust (NYSE: LPT) for $13.0
billion, including the assumption of debt. In connection
with the transaction, each share of Liberty common stock was
converted into the right to receive 0.675 shares of Prologis common
stock.
The Liberty transaction expands Prologis' presence in a number
of key logistics markets, including Lehigh Valley, Chicago, Houston, Central
PA, New Jersey and
Southern California.
The acquisition on an owned and managed basis comprises:
- 108 million square foot logistics operating portfolio
- 4.9 million square feet of logistics development in
progress
- 1,748 acres of land for future logistics development with
build-out potential of 20.5 million square feet
- 3.8 million square foot office operating and development
portfolio
"The acquired Liberty portfolio is very complementary to our own
in many markets," said Prologis chairman and CEO Hamid R. Moghadam. "By adding Liberty's
portfolio to ours, we expand our footprint in important locations
and benefit from immediate operational cost savings."
"We are thrilled to welcome many of Liberty's talented team
members to Prologis—their expertise and deep market knowledge will
further strengthen our ability to provide industry-leading service
to our customers," said Prologis chief investment officer
Eugene F. Reilly. "We are also
excited to welcome approximately 325 new customers and expand our
relationship with 180 existing Prologis customers."
Prologis expects to capture immediate cost and long-term revenue
synergies, including approximately $120
million from corporate and general administrative cost
savings, operating leverage, lower interest expense and lease
adjustments.
BofA Securities and Morgan Stanley are acting as financial
advisors, and Wachtell, Lipton, Rosen & Katz is serving as
legal advisor to Prologis.
ABOUT PROLOGIS
Prologis, Inc. is the global leader in logistics real estate
with a focus on high-barrier, high-growth markets. As of
December 31, 2019, the company owned
or had investments in, on a wholly owned basis or through
co-investment ventures, properties and development projects
expected to total approximately 814 million square feet (76 million
square meters) in 19 countries. Prologis leases modern logistics
facilities to a diverse base of approximately 5,000 customers
principally across two major categories: business-to-business and
retail/online fulfillment.
FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts
are forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements are based on current expectations, estimates and
projections about the industry and markets in which we operate as
well as management's beliefs and assumptions. Such statements
involve uncertainties that could significantly impact our financial
results. Words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," and "estimates," including variations
of such words and similar expressions, are intended to identify
such forward-looking statements, which generally are not historical
in nature. All statements that address operating performance,
events or developments that we expect or anticipate will occur in
the future — including statements relating to rent and occupancy
growth, development activity, contribution and disposition
activity, general conditions in the geographic areas where we
operate, our debt, capital structure and financial position, our
ability to form new co-investment ventures and the availability of
capital in existing or new co-investment ventures — are
forward-looking statements. These statements are not guarantees of
future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Although we believe the
expectations reflected in any forward-looking statements are based
on reasonable assumptions, we can give no assurance that our
expectations will be attained and, therefore, actual outcomes and
results may differ materially from what is expressed or forecasted
in such forward-looking statements. Some of the factors that may
affect outcomes and results include, but are not limited to: (i)
national, international, regional and local economic and political
climates; (ii) changes in global financial markets, interest rates
and foreign currency exchange rates; (iii) increased or
unanticipated competition for our properties; (iv) risks associated
with acquisitions, dispositions and development of
properties; (v) maintenance of real estate investment
trust status, tax structuring and changes in income tax laws and
rates; (vi) availability of financing and capital, the levels of
debt that we maintain and our credit ratings; (vii) risks related
to our investments in our co-investment ventures, including our
ability to establish new co-investment ventures; (viii) risks of
doing business internationally, including currency risks; (ix)
environmental uncertainties, including risks of natural disasters;
and (x) those additional factors discussed in reports filed with
the Securities and Exchange Commission by us under the heading
"Risk Factors." We undertake no duty to update any forward-looking
statements appearing in this document except as may be required by
law.
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SOURCE Prologis, Inc.