Keystone Reports $1.5B Merger Pact

Keystone Property Trust, West Conshohocken, Pa., has announced a $1.5 billion merger agreement under which a partnership of Aurora, Colo.-based ProLogis and affiliates of investment companies managed by Eaton Vance Management will acquire Keystone and its subsidiaries.Under the merger pact, the partnership will acquire all the outstanding common shares and common units of Keystone for $23.80 per share in cash, representing a premium of approximately 17% over the closing price on April 30, Keystone said. The transaction has an equity value of $850 million (based on Keystone's approximately 35.7 million common shares outstanding), and a total value of approximately $1.5 billion, including debt and preferred shares, the company said. The merger has been approved by the Keystone and ProLogis boards of trustees and by Eaton Vance. Keystone, an industrial real estate investment trust, can be found online at http://www.keystoneproperty.com, and ProLogis, also an industrial REIT, can be found at http://www.prologis.com.