Norway’s Oil Fund, Prologis Buy Property in Madrid, Barcelona

Norges Bank Investment Management, which manages the world’s biggest sovereign wealth fund, bought a portfolio of real estate in Madrid and Barcelona through a joint venture with Prologis Inc.

Prologis European Logistics Partners Sarl bought more than 1.6 million square feet of logistics facilities and development land in the two Spanish cities from SABA Parques Logisticos, Prologis said in a statement today.

“Demand for logistics infrastructure in Spain is rising while construction of new facilities is at an historic low,” Philip Dunne, president of Prologis Europe, said in the statement. “We are pleased to acquire this well-located portfolio at a discount to replacement costs.”

The portfolio includes about 960,000 square feet in Barcelona and 676,000 square feet in Madrid, San Francisco-based Prologis said.

NBIM, based in Oslo, has paid a total of 242 million euros ($318 million) “for its 50 percent stake across four transactions following the creation of the joint venture in 2013,” it said in a separate statement.

Norway’s $880 billion sovereign wealth fund, the world’s biggest, formed a real estate group in July that will invest almost $10 billion annually over the next three years. The fund already owns properties on London’s Regent Street, Times Square in New York and the avenue des Champs-Elysees in Paris.

Norway’s wealth fund is mandated to hold about 60 percent in stocks, 35 percent in debt and 5 percent in properties. Line Aaltvedt, a spokeswoman for the fund, declined to immediately comment on the price when contacted by phone in Oslo.

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