Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 28 October 2019

Prologis Buying Liberty Property; Plans to Sell $3.5Bln of Properties

Prologis Inc. has agreed to acquire Liberty Property Trust in an all-stock deal valued at $12.6 billion, including the assumption of the Wayne, Pa., REIT's $3.4 billion of debt. The deal is expected to be completed early next year. The price Prologis is paying results in a 4.7 percent capitalization rate.

Commercial Real Estate Direct Staff Report

Prologis Inc. has agreed to acquire Liberty Property Trust in an all-stock deal valued at $12.6 billion, including the assumption of the Wayne, Pa., REIT's $3.4 billion of debt.

The transaction, which is expected to be completed early next year, will bolster Prologis' presence in a few key industrial markets. For instance, it'll triple its Lehigh Valley, Pa., holdings to nearly 28 million square feet from its current 9.6 million sf. In addition, Liberty also owns land in the region on which another 4 million sf could be developed.

"We've been trying to grow our presence in the Lehigh Valley for years," said Gene Reilly, Prologis' chief investment officer on a conference call today. "The fact is, Liberty has led this market from its inception."

Prologis, a San Francisco REIT, will swap 0.675 of its shares for every Liberty share outstanding. The debt it's assuming includes $2.6 billion of unsecured notes and nearly $300 million of property-level mortgages. The price it's paying results in a 4.7 percent capitalization rate.

It plans to generate some $3.5 billion from the sale, over the next two to five years, of Liberty's 4.3...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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