Warehouse giant Prologis is purchasing its rival Liberty Property Trust for $12.6 billion, creating a massive new player in the industrial real estate business.
Prologis aims to use the acquisition to bolster its presence in the United States amid a boom in e-commerce, according to Reuters. The company cited markets including New Jersey, Southern California and Chicago as places where the Liberty acquisition would help it establish a stronger foothold.
The deal will likely close during the first quarter of next year and help the firms save about $120 million. Prologis also plans to sell about $3.5 billion worth of its assets.
Prologis has been in acquisition mode as of late. Last year, it purchased DCT Industrial Trust, another rival company, for $8.4 billion, giving it an additional 71 million square feet of space in areas including Southern California and northern New Jersey. Earlier this year, Prologis entered negotiations to buy the Industrial Property Trust portfolio, which spans 37.6 million square feet across 21 states, for $4 billion. [Reuters] — Eddie Small