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Acquisitions

Prologis buys DCT Industrial Trust for $8.4B

Deal includes 215 acres in the NY/NJ area

DCT’s CEO Phillip Hawkins (Credit: Katthleen Lavine / Denver Business Journal)

Prologis, the world’s largest owner of distribution centers and logistics properties, has agreed to buy DCT Industrial Trust for $8.4 billion in stock and assumed debt, according to WSJ. With this deal, Prologis adds 71 million square feet to their massive industrial portfolio, which spans over 676 million square feet.

NYC Angle: The deal includes around 215 acres in the New York and New Jersey area, according to Bloomberg.

Sound Smart: Rental rates in industrial real-estate markets have increased more than 5 percent annually in the last two years. With the exponential growth in e-commerce driven by macro-economic changes, this trend will continue. 

How they draw it up: Synergies galore! The deal is expected to result in about $80 million in cost savings, operating leverage, interest expense and lease adjustments. It has the potential to generate $40 million of additional annual revenue in the future.

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