Black Creek Group Industrial Real Estate Investment Platform to be Acquired by Prologis for $3.99 Billion

Black Creek Group, Industrial Property Trust, Prologis, Morgan Stanley & Co., Eastdil Secured, Hogan Lovells, Denver,

DENVER (July 15, 2019) — Black Creek Group, a Denver-based real estate investment manager and development firm with a more than 25-year history, today announced its sponsored investment platform, Industrial Property Trust Inc. (IPT), has entered into a merger agreement pursuant to which it will be acquired by an affiliate of Prologis, Inc. (NYSE: PLD) in an all cash transaction valued at approximately $3.99 Billion, subject to adjustment for certain transaction costs. The transaction will not include IPT’s minority ownership interests in its two unconsolidated joint venture partnerships. IPT’s board of directors unanimously approved the transaction.

“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,” said Raj Dhanda, chief executive officer, Black Creek Group.  

This overall transaction represents:

  • 236 properties located across 24 geographic areas
  • 37.5 million square feet of industrial holdings that are currently 97% leased

“This is a compelling opportunity to acquire a portfolio of excellent asset quality and submarket composition consistent with our U.S. investment strategy and footprint,” said Eugene F. Reilly, chief investment officer, Prologis. “We expect to capture significant cost and revenue synergies, in addition to enhancing customer relationships and insights.”

“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.

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.

Morgan Stanley & Co. LLC and Eastdil Secured, L.L.C. are acting as financial advisors to Industrial Property Trust Inc. (IPT). CBRE, Inc. is acting as real estate advisor to IPT. Hogan Lovells is acting as legal advisor to IPT.

About Black Creek Group

Black Creek Group is an experienced real estate investment management and development firm that has bought or built more than $19 billion of investments over its more than 25-year history. The firm manages diverse investment offerings across the spectrum of commercial real estate – including office, industrial, retail and multifamily – providing a range of investment solutions for both institutional and wealth management channels. Black Creek Group has nine offices across North America with more than 300 professionals. More information is available at blackcreekgroup.com.

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