Prologis Inc (NYSE:PLD) as entered into a contract to buy out KTR Capital Partners. The big warehouse and retail distribution owner will part with $5.9 billion as agreed in the terms of the buyout.
So far, this is the biggest real estate treaty that has taken place this year. The report has it that KTR is in debt to the tune of $750 million. The firm also owns real estate property worth about $70 million in New Jersey, California, Texas, and Chicago. Prologis will absorb all of them including the debts.
Prologis will also give KTR some limited conglomerate units worth $230 million. The company is not standing alone in the venture. Norges Investment Management Bank will take a 45% partial ownership of KTR. The bank is also responsible for managing the Norwegian Government’s retirement fund.
KTR was launched in 2004 by a group of executives after the REIT sale of the former Eaton Vance Investment company. KTR was established in New York and has so far raised three funds, with about $2.5billion worth of invested capital since 2006 to 2013. The company over saw the development of office spaces, warehouses, and business parks. It also lease out distribution centers for food and beverage companies as well as playing a major role to e-commerce industries by providing assets. Most of KTR’s properties are strategically located near pain ports.
Prologis is situated in San Francisco and has established itself as one of the major real estate trusts in the USA. The company is worth over $22 billion and has over 2853 properties, most of which are located in North America. A few of the company’s properties are located in Asia and Europe.
The company also oversees $29 billion properties in its joint ventures and a few funds that are supported by institutional stakeholders. In 2011, Prologis made its mark as a solid real estate firm by merging with AMB Property Corp, which was worth more than $8 billion.
