Prologis, Norges Buy $2B Logistics Portfolio

The partnership’s purchase of 19 million square feet of logistics properties in markets across the U.S. follows a string of blockbuster industrial deals.

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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.

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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.

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