Prologis Inc. agreed to take over $ 8.4 billion in DCT Industrial Trust Inc.'s shares and debts, making the world's largest stockholder even larger as demand in the online age -Shoppings goes up.
For each of them they receive 1.02 Prologis shares, it said on Sunday in a statement. This equates to a premium of around 16 percent over the DCT closing price of $ 58.75 on Friday. The directors of Proltis in San Francisco and DCT in Denver agreed to the purchase, which should be completed in the third quarter, the companies said.
DCT has 71
"DCT markets are 100 percent aligned with our markets," said Hamid Moghadam, CEO of Prologis. "The portfolios are perfectly aligned – imagine DCT as a smaller US-focused version of Prologis – in the US, we're very similar – the same customers, the same customers in many cases."
Real Estate Investment Trusts specializing in industrial properties have outperformed REITs with a focus on shopping centers, rental apartments and office buildings. Shopping at Amazon.com Inc. and other Internet retailers still account for less than 10 percent of US retail sales, but it reconfigures supply chains and shapes the fate of warehouse owners. Demand is particularly in demand in and around large cities, where the on-line purchase cuts off the fastest.
"Many of our customers are not only busy with transporting pallets to shops, but also directly to consumers," said Phil Hawkins, CEO of DCT in an interview. "To be in this business you need to be in the right markets where consumers live and be close, and the efficiency of the e-commerce supply chain requires both location and functionality."
DCT and Prologis have been competing to improve e-commerce services for their tenants, often in warehouses literally right next to each other, Hawkins said. He will serve on the combined company's executive board while most DCT executives will go, Hawkins said.
The acquisition of DCT covers 7.1 million square feet of development, refurbishment and value-added projects; 195 acres (79 hectares) in the pre-development phase, mainly in Seattle, Atlanta, South Florida and Southern California, with the potential for more than 2.9 million square feet once built; and 215 acres under contract or choice, primarily in New York and New Jersey, Northern and Southern California, and Chicago, with an expandable potential of more than 3.3 million square feet.
DCT and Prologis have "spent over the last twelve years trying to stay one step ahead of the other and that competition has made us better," said Hawkins.
More: In Age of Amazon, you could invest in tech or warehouses
The transaction is Englisch: bio-pro.de/en/region/stern/magazine/…1/index.html Expected to Expect $ 80 Million in Savings, Operational Leverage, Interest and Lease Adjustments, and Generate Additional $ 40 Million in Annual Revenue and Development Income
JPMorgan Chase & Co is a financial advisor to Prologis, and the Bank of America Corp advises DCT.