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Prologis and Norges Bank Investment Management have struck a deal to acquire a 19 million square feet logistics real estate portfolio in a $1.99 billion deal that is expected to close in January 2020.
The portfolio consists of 127 properties located across multiple US markets, including Southern California, San Francisco Bay Area, Seattle and Dallas.
Under the terms of the agreement, Norges Bank Investment Management will acquire its 45% stake for approximately $896 million, valuing the portfolio at $1.99 billion dollars. No financing will be involved to fund the transaction. Prologis will acquire the remaining 55% interest and will manage the properties on behalf of the joint venture
This transaction follows Prologis' $12.6 billion acquisition of Liberty Property Trust, which was announced in October. In July, the REIT agreed to buy Black Creek Group's investment platform Industrial Property Trust in an all-cash transaction of $3.99 billion.
Indeed, Prologis has been on an acquisition spree for these assets, often competing with Blackstone in the bidding. Reportedly it lost out to the private equity giant for one of the biggest trades of the year: its acquisition of GLP's US warehouse portfolio for $18.7 billion.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
