ProLogis Buying Portfolio from JV

ProLogis, a Denver-based industrial real estate investment trust, is acquiring a portfolio of industrial assets from a joint venture between Dermody Properties and CalSTERS for a total consideration of about $1.85 billion, including transaction costs.The REIT has set up a property fund to channel the acquisition, which includes 114 properties comprising 24.7 million square feet of distribution space, about half of which is in the Reno, Nev., area. The portfolio also includes 518 acres of land, ProLogis reported. Affiliates of Lehman Brothers provided debt and equity funding for the transaction. The acquisition "significantly expands our platform in five key U.S. logistics markets through the addition of complementary, high-quality warehouse assets, and elevates us to the market-leading position in Reno, Las Vegas, and Eastern Pennsylvania," said ProLogis chief executive Jeffrey H. Schwartz. The company can be found online at http://www.prologis.com.