Norway Sovereign Fund Inks US Property Deal with Prologis

Norway’s sovereign wealth fund entered into a joint venture deal with Prologis Inc. to acquire a 45% interest in a 12.8 million square foot portfolio of industrial and logistic properties in the United States. The 66 properties are located throughout the United States in eight states across nine markets including Southern California, Pennsylvania, the San Francisco Bay Area, New Jersey, Las Vegas, Chicago, Seattle, Atlanta, and Miami. The deal also forms Prologis U.S. Logistics Venture (USLV) which allows the JV to acquire further real estate investments in the United States.

The sovereign fund will pay US$ 450 million for the 45% interest, valuing the entire portfolio at around US$ 1 billion. Prologis is the seller and will hold the other 55% interest. Prologis will manage the portfolio properties.

The deal is unencumbered by debt and no financing was involved in the closing.

According to the press release by Norges Bank Investment Management, Karsten Kallevig, chief investment officer for real estate, stated “We are investing in a solid portfolio of logistics assets close to key transportation hubs.”

On December 20, 2012, the sovereign fund through a joint venture purchased a 50% stake in a European logistics property portfolio from Prologis.

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