Prologis Closes Europe JV
First announced in December, the official closing of the deal between Prologis and Norges Bank (NBIM) took place on 19 March 2013. NBIM is the manager of the Norwegian Government Pension Fund Global. The new venture, PELP, acquired a stabilized portfolio of 49 million square feet (4.5 million square meters) comprising 195 Class-A logistics facilities wholly owned by Prologis. PELP is structured as a 50 / 50 partnership, including 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.
Find more information about Prologis’ 14-country European platform here.