Industrial Property Trust Shareholders Approve $4 Billion Deal with Prologis

Yesterday, shareholders of Industrial Property Trust, a publicly registered non-traded real estate investment trust sponsored by Black Creek Group LLC, voted and approved the sale of substantially all of the REIT’s assets to affiliates of Prologis (NYSE: PLD) in the previously announced merger proposal. The transaction is expected to close on January 8, 2020.

At the annual meeting of stockholders, 94.1 million shares voted in favor of the proposal, while 2 million voted against and 4.9 million abstained.

In July 2019, Black Creek Group announced plans to sell Industrial Property Trust to an affiliate of Prologis in an all cash merger transaction valued at nearly $4 billion. The REIT estimates that stockholders will receive approximately $12.18 per share as total consideration.

The transaction includes 236 industrial properties totaling 37.5 million square feet and 97 percent leased.

The transaction will 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.

Industrial Property Trust raised $1.8 billion in investor equity from its launch in 2014 until closing in 2017. The REIT’s estimated net asset value per share was $12.33 as of November 30, 2018 and shares originally sold for $10.00 each.

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