ProLogis to Buy Catellus

ProLogis, a Denver-based industrial real estate investment trust, is acquiring Catellus Development Corp., a San Francisco-based industrial REIT, for a total purchase price of about $4.9 billion.The price includes Catellus liabilities being assumed by ProLogis, as well as transaction costs, the REITs said. Catellus shareholders can opt to receive either $33.81 per Catellus share in cash or 0.822 of a ProLogis common share per Catellus share. This price represents a 16.1% premium over the closing price of Catellus shares on June 3, according to the REITs. The combined company will have an interest in over 350 million square feet in about 2,250 facilities in 75 markets in North America, Europe, and Asia, the REITs said, as well as over 100 million square feet in potential "buildable" area. "By increasing the size and quality of our direct-owned pool of industrial properties, we create substantially more flexibility, enabling us to support further growth in our global development and fund business," said Walter C. Rakowich, president and chief executive officer of ProLogis. Ted Antenucci, president of Catellus, will be ProLogis' president for global development after the transaction closes.