S.F.-based Prologis’s $23.7 billion buyout of Duke Realty rejected

Duke said Wednesday that Prologis’s offer is “insufficient” and “virtually unchanged from its prior proposals.”

Prologis owns 1 billion square feet of industrial real estate, leased to tenants including Amazon and FedEx. Duke owns around 160 million square feet, including properties in San Jose, Richmond and Hayward, according to its website.

“We are confident that the proposed combination will be a win-win for our respective shareholders,” Prologis CEO Hamid Moghadam said in a statement on Tuesday. “Prologis has a proven track record serving as a leader and innovator in our industry.

The industrial market has boomed during the pandemic, with customers gravitating to online shopping and companies seeking space closer to urban centers. Nationally, industrial space had a record low vacancy rate of 3.1% at the end of the first quarter, according to CBRE, a real estate brokerage.

Prologis has previously grown with acquisitions, buying Liberty Property Trust for $13 billion in 2020 and DCT Industrial Trust for $8.5 billion in 2018.

Locally, Prologis has a more than 1 million-square-foot development plan proposed in San Francisco’s Bayview, which is undergoing city reviews.

Roland Li is a San Francisco Chronicle staff writer. Email: roland.li@sfchronicle.com Twitter: @rolandlisf

Article source: https://www.sfchronicle.com/bayarea/article/S-F-based-Prologis-s-23-7-billion-buyout-of-17166110.php

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