AURORA, CO-Shareholders of two real estate giants, ProLogis, the world's largest industrial real estate investment trust, and San Francisco-based Catellus, overwhelmingly gave their blessing to the $3.6-billion merger on Wednesday.
More than 155 million, or 83%, of ProLogis' outstanding shares were voted, with approximately 99% voting in favor of the merger proposal. More than 77 million, or 74%, of Catellus' outstanding shares were voted, also with approximately 99% voting in favor of the merger proposal. Subject to the satisfaction or waiver of the conditions to closing, the merger is expected to today. Also today, shares of Catellus common stock will be delisted following the market's closing.
The combined company will offer the world's largest network of distribution facilities and services, with more than 368 million sf in more than 2,305 facilities owned, managed and under development in 76 markets in North America, Europe and Asia, as well as land positions supporting more than 133 million buildable sf of potential development across its global markets.
Catellus has determined that no special dividend will be required in connection with the closing of the merger. Today, if the closing goes as expected, Ted Antenucci, president of Catellus Commercial Development, will join ProLogis as president of global development. Antenucci has been with Catellus since 1995 and has managed the company's expansive industrial development activities throughout the US. Nelson C. Rising, Catellus' chairman and chief executive officer, and Christine N. Garvey, former head of Corporate Real Estate Services for Deutsche Bank AG London and a current Catellus board member, will join ProLogis' board of trustees.
In an earlier report, Morningstar analyst Heather Smith had this to say about the then pending merger: "We believe this is a savvy move as Catellus' attractive industrial portfolio--with higher occupancies, newer buildings, and a concentration in high-growth markets--will enhance the asset quality."
ProLogis has 321.3 million sf in 2,079 distribution facilities owned, managed and under development in 76 markets in North America, Europe and Asia. The much smaller Catellus owned and operated 41.1 million sf in predominately industrial properties in major distribution centers across the country. In the Denver area, both Catellus and ProLogis have facilities along the Interstate 70 corridor.
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