Prologis Inc., the world’s largest owner of industrial real estate, agreed to buy KTR Capital for $5.9 billion, according to the Wall Street Journal.
Prologis will assume about $750 million in debt as part of the transaction, the Journal reported on Sunday, citing unidentified people familiar with the matter. KTR, based in New York, buys and develops warehouses and business parks with office space and distribution centers for retailers and food companies, the newspaper said.
Prologis, based in San Francisco, has a market value of about $22 billion. Warehouse properties have become attractive as global trade increases, luring investors in recent years.
KTR owns about 70 million square feet of real estate in 25 markets, concentrated in California, New Jersey, Chicago, South Florida and Texas, according to its website. The company is led by Jeffrey Kelter, the former CEO of Keystone Property Trust. Keystone was acquired by a group including ProLogis in 2004, according to the Wall Street Journal.
Prologis has been negotiating its purchase of KTR for about three months, the Journal reported, citing the people familiar with the transaction. Other bidders who looked at the company as part of the process include Blackstone Group LP, the world’s largest real-estate fund manager, and investment firm Brookfield Asset Management , according to the newspaper.