SAN FRANCISCO-Prologis has partnered with Norges Bank Investment Management to form a joint venture, the aim of which is to acquire a portfolio of high-quality distribution facilities wholly owned by Prologis in 11 target European global markets. Prologis European Logistics Partners will be structured as a 50/50 joint venture with an equity commitment of approximately $3 billion. This includes a $1.5 billion co-investment from NBIM, which manages the Norwegian Government Pension Fund Global, and Prologis.
The immediate focus of the JV after the deal closeswill be to acquire a stabilized portfolio of 195 properties totaling approximately 49 million square feet. The blk of this will come from the former Prologis European Properties Fund. The rest, roughly 25%, will be comprised of assets currently owned fully by Prologis. The company also stated that the venture has an initial term of 15 years, which may be extended for additional 15-year periods.
In a statement, Prologis co-chairman Hamid R. Moghadam said, “this joint venture is a significant milestone for Prologis, as it completes our European recapitalization ahead of schedule. Our private capital business serves as a powerful growth engine for the company, allowing us to continue to serve our growing global customer base, while redeploying capital efficiently and increasing and diversifying our revenue.”