Norges Bank Investment Management Acquires Significant Stake in US Logistics Portfolio
Deal News | Jan 03, 2025 | Norges Bank Investment Management (NBIM)
Norges Bank Investment Management (NBIM), the fund management arm of Norway's Norges Bank, has entered into a strategic joint venture with global industrial real estate group Goodman to invest in a logistics portfolio located in the United States. The agreement was signed on December 20, 2024, and officially completed on January 1, 2025. NBIM acquired a 45% ownership stake for USD $1.07 billion, a transaction valuing the entire portfolio at USD $3.265 billion, which includes an existing debt of USD $888 million. The seller is the Canada Pension Plan Investment Board (CPP Investments), which transferred its interest while Goodman retains its 55% share. NBIM sees this investment as an opportunity to expand its logistics real estate exposure and align with its long-term strategy. The portfolio spans a total leasable area of 1.3 million square meters and includes 48 buildings and five land plots, mainly characterized by high-quality infrastructure in strategic locations that offer strong growth potential due to limited new supply. This move reflects NBIM's commitment to diversifying its asset base in sectors such as logistics that are witnessing robust demand.
Sectors
- Real Estate Investment
- Logistics and Distribution
Geography
- United States – The location of the logistics portfolio acquired by Norges Bank Investment Management.
- Norway – The home country of Norges Bank Investment Management.
- Canada – The original seller, the Canada Pension Plan Investment Board, is based in Canada.
Industry
- Real Estate Investment – Involves the acquisition of ownership stakes in real estate properties, specifically logistics-focused portfolios in this instance.
- Logistics and Distribution – Encompasses the management of facilities and areas for storage and distribution, central to the logistics portfolio NBIM invested in.
Financials
- 1070 million dollars – The purchase price paid by Norges Bank Investment Management for a 45% ownership interest.
- 3265 million dollars – The total valuation of the logistics portfolio.
- 888 million dollars – The existing debt encumbered by the portfolio.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Norges Bank Investment Management (NBIM) | Bidding Company | Company | The fund management division of Norges Bank, investing in real estate and renewable energy infrastructure. |
| Canada Pension Plan Investment Board (CPP Investments) | Selling Company | Company | A professional investment management organization that manages the funds of the Canada Pension Plan. |
| Goodman | Other Company | Company | A global industrial real estate group, retaining its ownership and managing the logistics asset. |
| Per Lken | Person | People | Global Head of Unlisted Real Estate at Norges Bank Investment Management. |
| Edward Lerum | Person | People | Head of Global Logistics Real Estate at Norges Bank Investment Management. |