Prologis to Buy Duke Realty in $26 Billion Deal, Including Debt

is buying

in a deal valued at $26 billion, including the assumption of debt, the companies said Monday.

The respective boards of directors for Prologis and Duke Realty have unanimously approved the transaction.

Under the terms of the agreement, Duke Realty shareholders would receive 0.475 times a Prologis share for each Duke Realty share they own, an improvement from Prologis’s previous exchange offer of 0.466 times.

In May, Duke Realty rejected a nearly $24 billion buyout offer from Prologis, calling the unsolicited offer insufficient. Prologis had offered to buy Duke Realty for $61.68 a share.

Under the current deal, Prologis is gaining high-quality properties for its portfolio in key areas, including southern California, New Jersey, South Florida, Chicago, Dallas and Atlanta.

Prologis plans to hold 94% of the Duke Realty assets and exit one market.

Prologis said the transaction is expected to have immediate accretion of $310 million to 370 million from corporate general and administrative cost savings and operating leverage as well as mark-to-market adjustments on leases and debt. In the first year, the transaction is expected to increase annual core funds from operations by 20 cents to 25 cents.

The transaction is currently expected to close in the fourth quarter of 2022.

Prologis will gain properties for its portfolio in key areas with the transaction, including Southern California, New Jersey, South Florida, Chicago, Dallas and Atlanta.