Prologis and Norges Bank Investment Management Close €2.4 Billion Joint Venture in Europe

Prologis, Inc. (NYSE: PLD), the leading global owner, operator and developer of industrial real estate, announced the closing of Prologis European Logistics Partners Sàrl (PELP), a €2.4 billion ($3.1 billion) joint venture with Norges Bank Investment Management (NBIM), manager of the Norwegian Government Pension Fund Global.

The venture acquired a stabilized portfolio of 4.5 million square metres comprising 195 Class-A logistics facilities wholly owned by Prologis. PELP is structured as a 50 / 50 partnershipwith an equity commitment of €2.4 billion ($3.1 billion), which includes a €1.2 billion ($1.55 billion) 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,” said Hamid R. Moghadam, chairman and CEO, 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 percent following the second anniversary of closing.