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Real estate investment trust Prologis Inc. has entered a $26-billion merger agreement with Duke Realty Corp., which seeks to boost growth and deliver more services moving forward.
Source: Prologis
PLD is down 5.31%, and DRE is up 2.61% premarket.
Under the deal, Prologis will take over an estimated 94% of Duke Realty’s assets, and exit one market. It will create the immediate accretion of some $310 to $370 million from corporate general and administrative cost savings.
The merger provides Duke Realty shareholders 0.475x of a Prologis share for each Duke Realty share they possess, with the transaction set to be completed by the fourth quarter of the year, subject to conditions.
The acquisition will cover some 164 million square feet of properties, including both those already in operations and those still in development. It also covers 1,228 acres of land owned and under option.
Duke Realty Chairman and Chief Executive Officer Jim Connor said the merger will accelerate the business potential and improve services to tenants and partners, adding that it is in the “best lone-term interest” of the firm.
The transaction has been unanimously approved by the board of directors of both parties.
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