Prologis Jumps On This $12.6 Billion Deal
Prologis (NYSE: PLD) is one of the world's largest owners of industrial real estate, and it just inked a $12.6 billion deal to buy competitor Liberty Property Trust (NYSE: LPT). This isn't unique in the real estate investment trust (REIT) industry -- acquisitions have been big news lately. There are two notable trends underpinning the moves by Prologis and others. Current shareholders might like what they see going on, but investors looking to put cash to work should think twice before buying today. Here's what Prologis' recent acquisition says about the broader REIT space.
In late October, Prologis announced that it was buying Liberty Property Trust, paying $12.6 billion including the assumption of debt. An all-stock deal, Liberty investors will get 0.675 shares of Prologis for each Liberty share they own. This news comes after activist shareholder Jonathan Litt pushed Liberty to sell itself.
Image source: Getty Images.
Source Fool.com
