Prologis and AMB Announce Merger

Posted by on Jan 31, 2011 in Blog, Real Estate | 0 comments

Prologis and AMB Announce Merger

Prologis is the largest industrial real estate investment trust in the world. Prologis is traded on the New York Stock Exchange as NYSE: PLD. AMB is another big industrial REIT. Both have properties out here in the Miami Airport West submarket. Together, these two companies will have major strength in the industrial market for owning property, as well as being a major operator and developer of industrial properties.

This merger will give both companies about $46 billion in assets. The deal is expected to close in the second quarter of 2011. Hamid R Moghadam is the CEO for AMB Property Corporation. Walter C. Rakowich is the CEO for Prologis. Mr Rakowich has a good interview on Bloomberg where he discusses demand for industrial spaces.

While the largest REIT takeover was Blackstone Group LP’s 2007 acquisition of Equity Office Properties Trust for $39 billion, the Prologis and AMB merger is the largest merger to date for REITs that specialize with industrial assets.

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