Industrial Property Trust Shareholders Approve Sale to Prologis
December 12, 2019
Industrial Property Trust Inc. obtained stockholder approval for the planned sale of substantially all of its assets to affiliates of industrial real estate investment trust Prologis Inc.
At the December 11 meeting, the shareholders also approved the proposed conversion of the company’s legal form of organization to a Maryland REIT from a Maryland corporation and its subsequent liquidation and dissolution.
The Prologis deal is expected to close January 8, 2020, subject to the satisfaction or waiver of all closing conditions.
On July 15, 2019, the Company announced that it had entered into an agreement and plan of merger (as amended and restated on August 20, 2019) pursuant to which it or its wholly-owned real estate assets will be acquired by an affiliate or affiliates of Prologis, L.P. in an all cash transaction valued at approximately $3.99 billion, subject to certain transaction costs. On August 22, 2019, the Company announced that it had elected to structure the transaction as a sale of substantially all of IPT’s assets excluding its interests in its unconsolidated joint venture partnerships, and following the sale, the Company will continue to exist with its remaining assets consisting primarily of its minority ownership interests in its unconsolidated joint venture partnerships. As of September 30, 2019, the joint venture partnerships owned 55 buildings. The REIT had a 20.0% ownership interest in 38 buildings and an 8.0% interest in 17 buildings, with a total book value of the assets as of September 30, 2019, of $121.6 million.
In the July 15 announcement, Raj Dhanda, CEO, Black Creek Group, said, “We believe this transaction makes sense for our investors as we want to deliver shareholder returns that maximize the current economic environment. The industrial sector continues to be one of the strongest in commercial real estate with record low vacancies and demand outpacing supply. Given the strength of the sector, not only do we plan to continue to develop and acquire assets for other portfolios but create products that make sense for investor needs and the market cycle.”
The overall transaction represents:
• 236 properties located across 24 geographic areas
• 37.5 million square feet of industrial holdings that were currently 97% leased
“In our more than 25-year history, we have delivered four full-cycle industrial portfolios and are excited to deliver another with this announcement. The transaction is a testament to our commitment to delivering high-quality products that create value for our investors” stated Evan Zucker, principal, co-founder and managing partner, Black Creek Group, in the July 15 announcement.
Over Black Creek Group’s history, the firm has sponsored 24 investment platforms and has taken six platforms that span real estate asset classes full cycle through either a liquidity event or an IPO on the New York Stock Exchange.
Source: SEC
