NEW YORK: Prologis Inc will acquire Duke Realty Corp in a nearly US$26bil (RM114.9bil) all-stock deal, including debt, the companies said on Monday, as the world’s largest warehouse owner seeks to bolster its portfolio amid concerns over cooling demand.
The deal comes after a months-long pursuit of Duke by San Francisco-based Prologis, whose customers include online retail giant Amazon.com Inc and parcel delivery firm FedEx Corp.
Demand for warehouse space surged from the pandemic-driven switch to online shopping as companies sought to meet the need for urgent delivery.
Dealmaking activity in the real estate investment trust sector soared to US$140bil (RM618.6bil) in 2021, one of the strongest years on record, according to real estate management company JLL.
The rush, however, seems to be cooling.
Bloomberg reported last month that Amazon was looking to sublet at least 10 million sq ft of space and could renegotiate lease terminations with landlords such as Prologis.
“While demand remains well above supply at the moment, over the next few years the two will balance out as many customers slow their expansions to match slowing eCommerce growth,” Morningstar analyst Kevin Brown said. — Reuters
