Prologis, Norges Buy 1, Sell More

The joint venture partners wrapped up the acquisition of a San Francisco-area industrial property and the disposition of a 3.1 million-square-foot national logistics portfolio, which was picked up by a Blackstone affiliate. Together, the transactions involved a total of $310 million.

570 Eccles Ave., South San Francisco
570 Eccles Ave., South San Francisco

Industrial REIT Prologis Inc. and joint venture partner Norges Bank Real Estate Management have acquired one industrial property and sold several others in two recent transactions totaling roughly $310 million. The deals involve nearly 3.5 million square feet of logistics assets in California, Illinois, Florida and New Jersey.

In South San Francisco, Prologis and NBREM purchased the facility located at 570 Eccles Ave. from Sanrio Inc.  According to Sanrio documents, the partners shelled out $64.6 million for the 357,000-square-foot asset, with Prologis paying $35.5 million for its 55 percent interest.

On the sales side, Prologis and NBREM recently completed the two-phase disposition of 27 logistics facilities in metropolitan Chicago, Florida and New Jersey. With a 55 percent ownership interest, Prologis pocketed $134.8 million on the $244.9 million sale of the 3.1 million-square-foot portfolio, which was picked up by Blackstone affiliate, BRE Alpha Industrial Property Owner LLC.

Partnership power

Prologis and Norway-based Norges Bank Investment Management, of which NBREM is a subsidiary, have teamed up on transactions valued in the billions over the last few years. In late 2012, Prologis and NBIM entered into a definitive agreement to form the euro-dominated Prologis European Logistics Partners Sàrl, with an equity commitment of $3.1 billion. Just one year later, the partners inked another deal for the establishment of Prologis U.S. Logistics Venture, with the intention of acquiring a $1 billion stabilized logistics portfolio. A partnership larger than the two joint ventures combined was to come.

In 2015, Prologis and NBIM really turned heads when they completed the purchase of KTR Capital Partners’ real estate assets and operating platform in a $5.9 billion deal. And clearly, there’s more to come from the two investment entities.

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