Norway Oil Fund Buys $450 Million Stake in Prologis Properties

Norway’s $815 billion sovereign-wealth fund, the world’s largest, bought a 45 percent stake in 66 U.S. industrial properties from Prologis Inc. (PLD) for $450 million.

Prologis will retain a 55 percent share in the joint venture, which plans to add new assets in the future, Norges Bank Investment Management said in a statement today. There is no debt linked to the assets, which are located in eight states and span over 12.8 million square feet (1.2 million square meters).

“We are investing in a solid portfolio of logistics assets close to key transportation hubs,” Karsten Kallevig, NBIM’s chief investment officer for real estate, said in the statement.

Norway’s sovereign-wealth fund, which gets its capital from the country’s oil and gas activity and dividends from energy company Statoil ASA (STL), plans to increase the share of real estate investments to 5 percent of its total assets from 0.9 percent at the end of the third quarter. It made its first real estate purchase in 2011.

The fund bought a 50 percent share of a European property portfolio from Prologis for 1.2 billion euros ($1.6 billion) a year ago.

To contact the reporter on this story: Mikael Holter in Oslo at mholter2@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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