Prologis has closed the Prologis European Logistics Partners Sarl (PELP), a EUR2.4bn (USD3.1bn) joint venture with Norges Bank Investment Management (NBIM), manager of the Norwegian Government Pension Fund Global.
The venture acquired a stabilised portfolio of 49 million square feet (4.5 million square meters) comprising 195 Class-A logistics facilities wholly owned by Prologis.
PELP is structured as a 50 / 50 partnership with an equity commitment of EUR2.4bn (USD3.1bn), which includes a EUR1.2bn (USD1.55bn) co-investment by both NBIM and Prologis.
"Our partnership with Norges Bank is built upon a mutual, long-term investment perspective which is measured in decades," says Hamid R Moghadam, chairman and chief executive, Prologis. "This venture underscores the strengthening of Europe's industrial real estate market and the investment potential of our high-quality portfolio."
The venture may grow through acquiring strategic portfolios in target markets and, where appropriate, properties that complement the existing asset base. The venture has an initial term of 15 years, which may be extended for additional 15-year periods. Prologis will have the ability to reduce its ownership to 20 per cent following the second anniversary of closing.