Prologis to Buy Liberty Property Trust for $12.6 Billion
San Francisco-based Prologis Inc. has announced that it struck a deal to acquire Liberty Property Trust, a company that owns millions of square feet of industrial space in the Twin Cities area, for $12.6 billion.
As part of the deal, Prologis will sell off $3.5 billion of assets. The purchase includes $2.8 billion in non-strategic logistics properties and $700 million in office properties. Liberty currently owns 22 industrial and warehouse properties with 43 tenants in the Twin Cities area, which makes up more than 2.5 million square feet.
The deal is expected to close during the first quarter of 2020 and has been unanimously agreed upon by the boards of Prologis (NYSE: PLD) and Liberty (NYSE: LPT). Under the terms, Prologis will acquire all of Liberty’s stock. Liberty shareholders will receive 0.675 of a Prologis share for each Liberty share they own.
In a joint statement, the companies said that Prologis’ acquisition of Liberty will strengthen Prologis’ presence in the logistics hubs of the Lehigh Valley, Houston, Chicago, New Jersey, Central Pennsylvania, and Southern California. Prologis hopes to retain a number of Liberty’s teams for property management, leasing, development and other positions at Prologis; however, staffing decisions have not yet been decided.