Prologis, a global industrial real estate investment trust (REIT) and Norway's $890 billion sovereign wealth fund, will acquire KTR Capital Partners for $5.9 billion in an attempt to expand in the US markets.

The company said in a statement that Prologis US Logistics Venture in partnership with Norges Bank Investment Management will purchase KTR Capital Partners. Prologis has a market value of nearly $22 billion. Approximately $700 million in debt will be assumed in the deal in addition to the issuance of $230 million of common limited partnership units in Prologis LP to KTR.

According to Prologis, the purchase will help in the expansion of the company in southern California, Florida and New Jersey in addition to Seattle, Chicago and Dallas. In recent years, increase in global trade has made warehousing luring and it attracted investors like Brookfield Property Partners LP and TPG Capital.

According to Hamid Moghadam, chairman and chief executive officer of Prologis, "It is rare to have the opportunity to acquire a portfolio of such high asset quality, customer profile and market composition that is so consistent with our own".

Prologis is looking forward to the transition to contribute nearly 14 cents a share to its estimate for annual core funds from operations. On Sunday, the company said in a different statement that the first quarter's core funds from operations increased 14% from a year earlier to 49 cents a share.

KTR has nearly 70 million square feet of real estate in 25 markets, in New Jersey, California, South Florida, Chicago and Texas, as mentioned on its website. Jeffrey Kelter, the former CEO of Keystone Property Trust, leads the company. In 2004, a group together with Prologis purchased Keystone for about $1.7 billion.