Prologis signs billion-dollar pact to buy DCT Industrial Trust
Date: 2018-04-30   Author: Dhananjay Punekar  Category: #news

Prologis signs billion-dollar pact to buy DCT Industrial Trust

Prologis Incorporation, a world leader across the logistics real estate sector, has proclaimed that it plans to buy DCT Industrial Trust Inc., a real estate major based in the U.S. The deal has been valued at USD 8.4 billion including the amount of debt. With the flourishing eCommerce sector fueling the growth of the distribution & warehouse business, this strategic move is speculated to prove beneficial for both Prologis & DCT.

As per the terms & conditions of the agreement, DCT investors are expected to receive 1.02 Prologis share for each share of DCT, thereby representing nearly 16% premium over DCT’s closing price of USD 58.75 as observed on last Friday.

For the record, Prologis is the biggest owner of distribution & logistics units across the globe and has a market value of nearly USD 36 billion. The landscape of the eCommerce industry has been changing dramatically across the globe, cite sources, as the sector demands more investments for warehouse development, especially across Asia, U.S., and Europe. The online shopping & retail business has propelled the demand for distribution centers, including luxurious shopping sites in the vicinity of the population for quickly delivering the goods that are ordered online by the shoppers.

According to Phil Hawkins, CEO of DCT, the proficiency of eCommerce supply chain activities depends upon the location, functionality, and right markets – specifically the ones located in the proximity of customers. The key officials of both Prologis & DCT have stated that the pact is likely to lead to save nearly USD 80 million in lowered operation costs, lease adjustments, and interest expenditure. They also further emphasized that the deal will generate nearly USD 40 million in terms of additional revenue annually along with the development profit over the coming years.

Analysts have anticipated that with the rising trend of online shopping witnessed across the urban landscape of the U.S., the deal is likely to help both the firms in robustly expanding their business operations.



About Author


Dhananjay Punekar

Dhananjay Punekar

Dhananjay currently works as a content writer at AlgosOnline. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted fo...

Read More

More from Dhananjay


Post Recommendents

Uber to close customer-support office in LA & shift base to Manila
Author: Saipriya Iyer

Uber Technologies Inc., a multinational ride-hailing company, has recently announced the closing of its Los Angeles office, reportedly laying off nearly 80 employees in the process. Without advance notice, the employee...


New York gives nod for the $26 billion T-Mobile and Sprint merger
Author: Saipriya Iyer

Manhattan’s federal judge has given a green signal to both the firms, allowing them to move forward with this merger.

After a yearlong battle against the T-...


Mota Ventures announced new JV with BevCanna Enterprises
Author: Pankaj Singh

Mota Ventures Corp., a renowned Vancouver based cannabis and CBD products company, has reportedly announced that it has entered into a definitive JV agreement with BevCanna Enterprises Inc., an emerging leader in infused cannabis beverages, to dis...