Tag: acquisition|distribution centre|warehouse

Prologis, Inc. and Duke Realty Corporation have announced that the two companies have entered into a definitive merger agreement by which Prologis will acquire Duke Realty in an all-stock transaction, valued at approximately $26 billion, including the assumption of debt. The respective board of directors for Prologis and Duke Realty have unanimously approved the transaction.

“We have admired the disciplined repositioning strategy the Duke Realty team has completed over the last decade,” said Prologis Co-founder, CEO and Chairman Hamid R. Moghadam. “They have built an exceptional portfolio in the US located in geographies we believe will outperform in the future. That will be fuelled by Prologis’ proven track record as a value creator in the logistics space. We have a diverse model that allows us to deliver even more value to customers.”

With the transaction, Prologis is gaining high-quality properties for its portfolio in key geographies, including Southern California, New Jersey, South Florida, Chicago, Dallas and Atlanta.

The acquisition on an owned and managed basis comprises:

• 153 million square feet of operating properties in 19 major US logistics geographies
• 11 million square feet of development in progress – about $1.6 billion in total expected investment
• 1,228 acres of land owned and under option with a build-out of approximately 21 million square feet
• Prologis plans to hold approximately 94% of the Duke Realty assets and exit one market

“This transaction is a testament to Duke Realty’s world-class portfolio of industrial properties, long-proven success and sustainable value creation we’ve delivered over the years,” said Duke Realty Chairman and CEO Jim Connor. “We have always respected Prologis, and after a deliberate and comprehensive evaluation of the transaction and the improved offer, we are excited to bring together our two complementary businesses. Together, we will be able to accelerate the potential of our business and better serve tenants and partners.

“We are confident that this transaction – including the meaningful opportunity it provides for shareholders to participate in the growth and upside from the combined portfolio – is in the best long-term interest of Duke Realty shareholders.”

“This transaction increases the strength, size and diversification of our balance sheet while expanding the opportunity for Prologis to apply innovation to drive long-term growth,” said Tim Arndt, Prologis‘ chief financial officer. “In addition to generating significant synergies, the combination of these portfolios will help us deliver more services to our customers and drive incremental long-term earnings growth.”

 

Aberdeen Standard European Logistics Income PLC (ASLI) has signed a purchase agreement for the previously announced acquisition of a modern logistics and distribution property in Lodz, Poland. ASLI will acquire the asset for €28.0 million, representing a net initial yield of 5.6%, from logistics and industrial developer Panattoni.

The 31,500 sqm Panattoni Lodz City VIII Logistics Centre consists of 27,888 sqm of warehouse space and 3,612 sqm of office space. The asset is 100% leased to six tenants generating a Net Operating Income of €1.59 million and with a Weighted Average Lease Term of 6.7 years.

Tenants at the asset include manufacturers Bilplast, Tabiplast, Mecalit Polska and Alfa Laval, logistics operator EGT Express Polska, retailer KAN, which owns the Polish fashion brand Tatuum, and Compal, one of the world’s largest computer component manufacturers, which signed a new 7-year lease in February 2021 and supplies the DELL factory located less than 1km from the site.

Located at the centre of Poland’s thriving industrial and manufacturing sector, the property is situated adjacent to the Bosch-Siemens Campus, which is a strategically important production and distribution hub for the international manufacturer. The site benefits from access to the Intermodal Container Terminal, created to support the Bosch-Siemens campus, which offers direct rail connections with China.

Lodz is Poland’s third largest city by population and is home to several universities. The Panattoni Park site is highly accessible by local public transport and the A1 and A2 motorways which provide North South, East West access across Europe, whilst Lodz international airport is just 15 minutes away.

Evert Castelein, Fund Manager for ASLI, commented: “The warehouse in Lodz is a very high-quality income producing asset located at the heart of one of the CEE region’s most strategically important manufacturing and logistics hubs. The asset’s proximity to the nearby Bosch Siemens Campus provides strong long-term attraction to occupiers in this supply chain, while the new international railway station and its direct links to China and other European markets provide unrivalled international connections. The Lodz region is in high demand from occupiers and the vacancy rate is one of the lowest in Poland.

“We believe strongly in Poland’s growth prospects and are pleased to be making our third acquisition in the country, and to have secured this asset at an attractive yield in a competitive logistics market. We are actively pursuing deals in the wider region and whilst the demand for logistics property has led to further yield compression, particularly in core markets, the overall return prospects for investors in this sector are expected to remain strong as operators continue to seek additional capacity and the reshoring of operations from overseas gathers pace.”

Cushman & Wakefield advised Aberdeen Standard European Logistics Income PLC.