Industrial Property Trust, a publicly registered non-traded real estate investment trust sponsored by Black Creek Group LLC, has completely the sale of its real estate portfolio to affiliates of Prologis Inc. (NYSE: PLD) in a deal valued at approximately $4 billion. Industrial Property Trust shareholders approved the deal last month.
“We are pleased to deliver on our commitment of building high-quality portfolios that provide investors with healthy shareholder returns and we remain dedicated to the industrial sector as we continue to acquire and develop industrial assets for our other portfolios,” said Raj Dhanda, chief executive officer at Black Creek Group. “Our goal is to continue to deliver strong investment results for investors in our portfolios in the future.”
The transaction consisted of 236 properties totaling 37.5 million square feet of industrial space that are currently 96 percent leased. This marks the seventh platform that Black Creek has taken full cycle through either a liquidity event or an IPO on the New York Stock Exchange.
Industrial Property Trust plans to distribute $2.23 billion of the merger consideration it received pro rata to stockholders within five business days of the closing, with each shareholder entitled to receive a special distribution of $12.54 per share. Shares were originally sold for $10.00 each.
The transaction did not include minority ownership interests held in two unconsolidated joint venture partnerships. The REIT is currently exploring alternatives for its ownership share in the joint ventures, which were valued at approximately $295 million in November 2018.
Following the sale to Prologis, the board approved an estimated net asset value of the company’s common stock of $1.25 per share as of January 8, 2020.
Industrial Property Trust raised $1.8 billion in investor equity from its launch in 2014 until closing in 2017. Black Creek currently offers investments in all major property types, including core, value-add and opportunistic.