Prologis, Norges Buy $2B Logistics Portfolio
- Nov 26, 2019
Logistics giant Prologis and its joint venture partner Norges Bank Investment Management (NBIM), the real estate arm of Norway’s sovereign wealth fund, have agreed to purchase a 127-property logistics portfolio spread across several cities in the U.S. for $1.99 billion.
Under the terms of the deal, NBIM will acquire a 45 percent stake in the portfolio for approximately $896 million, while Prologis will acquire the remaining 55 percent stake in the portfolio and will manage the properties on behalf of the joint venture. NBIM said in a release that no financing will be involved to fund the purchase.
The acquisition comes after Prologis’ blockbuster purchase of Liberty Property Trust last month for $12.6 billion, one of the largest-ever logistics deals. According to a release from NBIM, the purchase is a subset of Prologis’ agreement to acquire Industrial Property Trust Inc.
The portfolio includes logistics properties in Southern California, the San Francisco Bay Area, Seattle and Dallas. Prologis did not respond to a request for more information on the properties as of press time.
Prologis and NBIM first joined forces in 2012, when the two entities formed a $2.4 billion joint venture to acquire a portfolio of distribution facilities in 11 European markets. The venture acquired a stabilized portfolio of 195 properties totaling roughly 49 million square feet.
Last year, the partnership sold a $1.1 billion industrial portfolio owned jointly by both entities to Singapore-based Mapletree Investments. The 16.5 million-square-foot logistics portfolio included properties in Chicago, Dallas and Seattle, as well as in cities within France, Germany, Hungary and Poland.