San Francisco-based industrial real estate investment trust
) acquired its partners' 72% interest in Prologis Institutional
Alliance Fund II. The deal helped Prologis benefit from its
portfolio that comprises 52 facilities, which are advantageously
placed in 7 global infill markets across the nation and primarily
concentrated in Southern California, the San Francisco Bay Area
and New Jersey.
In particular, the acquisition is a rewarding one as it brings in
U.S. portfolio spanning 4.9 million square feet. Prologis has
funded the deal with the capital infused from its offering in the
second quarter. Earlier, Prologis owned 28% stake in Alliance
Fund II that was launched in Jun 2001. Notably, the venture's
term end was nearing.
With a larger customer base, rise in e-Commerce application and
supply chain consolidation, there is an increasing demand for
Class-A facilities and Prologis stands to benefit as it has the
capacity to offer modern distribution facilities in strategic
Also, the recent build-to-suit deal in Poland is a strategic fit
as it will enable the company to substantially penetrate the
industrial real estate market of Europe. Spanning 376,000 square
feet, this distribution center represents the fourth
build-to-suit project in less than two years at Prologis Park
Yet, for this Zacks Rank #3 (Hold) stock, market vacancy
increases may mitigate its ability to push through rental-rate
increases. Also, rising interest rates could increase its cost of
Other REIT stocks that are performing well and deserve a look are
DCT Industrial Trust Inc.
Extra Space Storage Inc.
). All of these carry a Zacks Rank #2 (Buy).
CUBESMART (CUBE): Free Stock Analysis Report
DCT INDUSTRIAL (DCT): Free Stock Analysis
EXTRA SPACE STG (EXR): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
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