Prologis completed its acquisition of DCT Industrial Trust for $8.5 billion in a strategic move viewed as creating new opportunities for Prologis to profit from the ecommerce boom.
"We have tremendous respect and admiration for what the DCT team has accomplished in transforming their organization into a premier logistics company," said Hamid R. Moghadam, chairman and chief executive officer of Prologis, which announced it will be retaining DCT management.
Prologis is expected to fold DCT urban properties into its ambitious strategic plan to create fulfillment and warehouse properties inside or very near large concentrations of ecommerce customers. Prologis’ commitment to this goal already is evident in projects it’s pursuing (AA, 8-15-18, P. 1).
The acquisition expands Prologis' presence in the high-growth markets of Southern California, the San Francisco Bay Area, Seattle and South Florida.
At the time of the acquisition, the DCT portfolio included 71 million square foot owned and managed operating portfolio; along with 7.5 million square feet of development, redevelopment and value-added projects.
DCT also has 305 acres of land in pre-development with an estimated build-out potential of over 4.5 million square feet and 131 acres of land under contract, or option, with a build-out potential of over 1.6 million square feet.
Prior to the acquisition, Prologis owned or had investments or co-investment ventures involving properties and development projects that are expected to total approximately 756 million square feet in 19 countries.