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NEW YORK (AP) - Brookfield Property Partners is buying Industrial Developments International Inc. for $1.1 billion.
Industrial Developments owns 75 industrial distribution facilities in 12 states that serve consumer product, retail and industrial companies. The Atlanta company also has a third party property management business and some future development projects.
Brookfield's currently holds interests in 35 million square feet of industrial space and 19 million square feet of office development pipeline. The acquisition will give Brookfield's industrial portfolio more than 62 million square feet of operating assets and more than 79 million square feet of future development potential.
The transaction with the U.S. subsidiary of Japan's Kajima Corp. will make Brookfield Property Partners LP, based in Bermuda, one of the world's biggest owners of industrial and logistics facilities. It will have operations in North America, Europe, the Middle East and China.
"The combined business will own irreplaceable assets and development sites near major markets and transport routes," Brookfield CEO Ric Clark said in a statement on Wednesday.
The buyout is expected to close in the fourth quarter.
Brookfield Asset Management Inc. completed the spinoff of Brookfield Property Partners LP, its former commercial real estate unit, in April. Shares of Brookfield Property Partners closed Tuesday at $20.33, down about 1 percent since the spinoff.
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