Canada-based Brookfield Property Partners LP is acquiring Industrial Developments International Inc. from the U.S. subsidiary of Kajima Corp. for $1.1 billion.
Once the transaction is complete, Brookfield will own a 25 percent stake in IDI, creating one of North America’s largest industrial property companies. Brookfield’s industrial portfolio will consist of 62 million square feet with 79 million square feet of future development potential.
The transaction is expected to close in the fourth quarter.
“The addition of IDI to Brookfield’s existing industrial operations will create a leading global industrial real estate company able to deliver high quality distribution facilities to clients around the world,” Brookfield Property Group CEO Ric Clark said in a statement.
Atlanta-based IDI has been the most active industrial developer in Memphis following the recession, and the Memphis market has been IDI’s busiest market company-wide in 2012 and 2013.
IDI recently signed a 500,000-square-foot lease at Crossroads Distribution Center Building G in Olive Branch.
IDI inked two large leases in the first quarter totaling 788,148 square feet. Trane U.S. Inc. renewed its 373,644-square-foot lease at the Stateline H facility while the TJX Cos. Inc. signed a new 414,504-square-foot lease at Chickasaw D.
IDI has begun an expansion of the 478-acre Crossroads to meet growing demand. Building L, slated to be 241,994 square feet with an October completion date, broke ground in June. Building D, scheduled to be 241,920 square feet and delivered in November, also broke ground in June. Including the two new buildings, Crossroads contains seven buildings totaling 3.2 million square feet.
IDI is also the developer of Stateline Business Park in Southaven.