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Warehouse Giant Prologis In $26B Deal With Duke

By  |  June 14, 2022

Prologis, a warehouse-focused real estate income trust, said on Monday it would acquire peer Duke Realty for about $26 billion, including debt, in an all-stock deal, making it one of the largest transactions in the booming REIT sector.

The deal follows two earlier rejected offers by San Francisco-based Prologis, whose customers include online retail giant Amazon and parcel delivery firm FedEx.

As part of the deal, Duke Realty shareholders will receive 0.475 of a Prologis share for each share held, with the transaction expected to close later this year subject to regulatory approvals.

Deals involving REITs reached a record high of $140 billion in 2021, driven by a robust U.S. housing market, availability of cheap capital from low interest rates, and strong economic recovery from the pandemic. REIT deals totaled just $17 billion in 2020, according to real estate services provider JLL.

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