Prologis Completes $23B Acquisition of Duke Realty

This is the industry’s largest enterprise-level deal of the past four years.

Prologis Valwood Corporate Center

Prologis Valwood Corporate Center

Following approval by the shareholders of both firms, Prologis has closed on its all-stock, debt-assuming acquisition of Duke Realty Corp. The deal, valued at $23 billion, includes Duke’s complete 142 million-square-foot investment, management and development portfolio, which encompasses 480 buildings and 500-customers.

The newly acquired array of Duke logistics properties will significantly augment Prologis’ 1 billion-square-foot portfolio of warehousing and logistics facilities. The physical assets are located in 19 major U.S. industrial markets, including Southern California, Dallas, Atlanta, Chicago, South Florida and New Jersey. Prologis will also acquire Duke’s 7 million-square-foot development pipeline, which spans 1,228 acres and 17 million square feet of developable land. All the customers being newly onboarded and managed by Prologis will have access to the firm’s proprietary Prologis Essentials service, which provides both supply chain and sustainability-related industrial and logistics solutions to tenants. Additionally, Prologis will integrate the assets into its Strategic Capital co-investment platform, in addition to equipping the facilities with brand-standard amenities such as rooftop solar panels.

Prologis CFO Tim Arndt further detailed the scope of the purchase, telling Commercial Property Executive, “This is the largest acquisition we’ve completed in the last seven years and the most strategic. Integrating the Duke portfolio and talent into our company strengthens Prologis. Our combined company has an even better portfolio, offers more choice for our customers and we’re even in a better place to grow our related businesses, including our Strategic Capital and Essentials businesses.”

Prologis CEO Hamid Moghadam acknowledged the value and significance of the acquisition, saying in prepared remarks, in addition to the day-one accretion and avenues for further earnings growth, this acquisition gives us an even stronger ability to support our customers and their growth.

Prologis’ rapid pace of acquisitions

The purchase of Duke Realty is Prologis’ largest enterprise-level transaction during the past seven years, following its $13 billion acquisition of Liberty Property Trust in February of 2020, as well as its $8.5 billion purchase of DCT Industrial Trust in 2018.

Goldman Sachs and Citigroup served as financial advisors to Prologis, while Wachtell, Lipton, Rosen & Katz acted as legal advisors. Morgan & Stanley Co. and J.P. Morgan Securities, as well as Hogan Lovells US and Alston & Bird LLP served the same roles respectively for Duke. Following the completion of the sale, Duke Realty Chairman & CEO James Connor has been appointed to the Prologis Board of Directors.

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