Prologis to Buy KTR for $5.9 Billion -- 2nd Update

By Robbie Whelan And Shayndi Raice 

Prologis Inc., a big owner of warehouses and distribution centers, agreed to buy industrial-property owner KTR Capital Partners for $5.9 billion, in one of the largest real-estate deals so far this year.

Prologis said in a statement that it would buy closely held KTR, which owns about 70 million square feet of real estate, concentrated largely in California, New Jersey, Chicago, South Florida and Texas. The statement confirmed an earlier report from The Wall Street Journal.

The purchase price includes the assumption of about $700 million of secured mortgage debt and the issuance of as much as $230 million of limited partnership units to KTR, according to the statement.

Prologis is buying KTR through a joint venture that is 45%-owned by Norges Bank Investment Management, which manages the Norwegian Government's pension fund.

Write to Robbie Whelan at [e-mail] and Shayndi Raice at [e-mail]

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