Prologis Inc. (NYSE: PLD) has acquired the real estate assets and operating platform of KTR Capital Partners and its affiliates, for $5.9 billion. Prologis U.S. Logistics Venture acquired KTR Capital Partners’ three investment funds in a consolidated joint venture with Norges Bank Investment Management (NBIM), manager of the Norwegian Government Pension Fund Global. The portfolio consists of 60 million square feet, 3.6 million square feet of development in-progress and 6.8 million square feet of land with potential build out.
“Prologis and NBIM are taking ownership of a very distinctive portfolio that will generate above-market net operating income growth in what is presently a very favorable operating environment,” said Bob Savage, president of KTR Capital Partners. “This transaction marks the culmination of a relentless effort by the entire KTR team to execute at the highest level.”
Established in 2004, KTR Capital Partners is an investment, development and operating company focused on the industrial sector in North America. It has a presence in several metropolitan areas, including Los Angeles, New Jersey, Chicago, Miami, Houston, and Dallas.
KTR Capital Partners invested more than $7 billion of capital across 215 transactions, involving nearly 600 properties that total more than 100 million-square-feet. This does not include about 25 million square feet of speculative and build-to-suit developments.
According to Jeffrey Kelter, chairman and chief executive officer of KTR Capital Partners, the Prologis Inc.-NBIM venture is the perfect home for the KTR Capital Partners’ assets. “[Prologis Inc.] is the industry bellwether and have been our fiercest competitor over the years … it makes sense that they would see the value in the portfolio we have created.”
Prologis Inc. is a development and management company, focusing on industrial logistics real estate across the Americas, Europe and Asia. It has about 594 million square feet of space that’s owned, managed or under development in its portfolio, including about 17 million in the DFW area.
Morgan Stanley & Co. LLC and Eastdil Secured served as financial advisors and Weil, Gotshal & Mangers LLP acted as legal counsel to KTR Capital Partners. CBRE provided an independent opinion of value for each of the funds.
