Just weeks after closing a multi-million U.S. office joint venture, Oslo, Norway-based Norges Bank has formed a $1 billion joint venture in U.S. industrial properties with Prologis Inc.
The two signed a definitive agreement to form Prologis U.S. Logistics Venture (USLV). Prologis' partner is Norges Bank Investment Management (NBIM), which is the manager of the Norwegian Government Pension Fund Global. USLV will be structured as a 55/45 venture with 55% owned by Prologis and 45% by NBIM.
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"Following our joint venture in Europe earlier this year, we are pleased to extend our relationship with NBIM into the U.S.," said James W. Green, managing director global client relations at Prologis.
Upon closing, the venture will acquire a $1 billion stabilized portfolio of 66 logistics facilities totaling 12.8 million square feet across the U.S. The portfolio will comprise a portion of assets from Prologis' former North American Industrial Fund III and Prologis Institutional Alliance Fund II. The venture is expected to close in January 2014.
The 66 properties are located throughout the United States in eight states across nine markets including Southern California, Pennsylvania, the San Francisco Bay Area, New Jersey, Las Vegas, Chicago, Seattle, Atlanta, and Miami.
"The formation of this venture is consistent with our joint long-term focus of investing in high-quality assets in key global markets," said Eugene F. Reilly, CEO of Prologis Americas. "USLV is expected to grow in the future, including through acquiring strategic portfolios and, where appropriate, properties that complement the existing asset base."
Earlier this month, Norges Bank and MetLife Inc. formed a new joint venture to buy high quality office properties in major U.S. markets and announced their first acquisition: One Financial Center in Boston.
The 46-story, five-star office building totaling 1.3 million square feet in the city’s financial district near Boston’s South Station. NBIM purchased its 47.5% share of the asset from seller Beacon Capital, while MetLife increased its current ownership stake by 2.5 percentage points to hold the remaining 52.5% stake.
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