Liberty Property Trust said that they have agreed to purchase the operating partnership of Cabot Industrial Value Fund III LP. The acquisition was tagged at about US$1.25 billion. The purchase will add properties to Liberty Property Trust, as well as paving the way for Liberty as it expands into new markets. The acquisition will add an additional 23 million square feet and 177 properties to Liberty Property Trust's portfolio. Under the terms of the purchase, Liberty Property Holdings will gain management rights over the operations of Cabot Industrial Value Fund III LP.
"With approximately 58 percent of this portfolio located in Liberty's current markets and approximately 21 percent in the target markets of Atlanta, Dallas and Southern California, we are expanding into three of the top five national industrial markets," William Hankowsky, chief executive officer of Liberty, said in the statement.
As part of the deal, Liberty Property Trust said that they will assume US$230 million worth of outstanding debt from Cabot Industrial Value Fund III LP. The fund deal includes debt and equity financing and real estate sales. Liberty Property Trust said that they are planning to sell an estimated 21 million shares in a soon to be announced public offering.
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