Prologis Inc (PLD.N), which owns warehouses and retail-distribution centers, said on Sunday it would acquire the real estate assets and operating platform of closely held KTR Capital Partners and its affiliates for $5.9 billion.
The assets consist of KTR's three co-investment funds and will be part of Prologis U.S. Logistics Venture, a joint partnership with Norges Bank Investment Management, according to a press statement. Prologis is the majority partner in the venture.
"This transaction will deliver accretive returns to our shareholders and will enhance our important and successful partnership with NBIM, which will now exceed $11 billion on two continents," said Prologis Chief Executive Officer Hamid Moghadam.
The total transaction value of $5.9 billion includes the assumption of about $700 million of secured mortgage debt and the issuance of up to $230 million of common limited partnership units in Prologis L.P. to KTR.
The acquisition is expected to add about 14 cents per share on a stabilized basis to the forecast annual core funds from operations, the statement said. This represents 7 percent growth from the midpoint of Prologis' 2015 outlook.
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