Norges Bank Investment Management Invests $1 Billion in US Logistics Portfolio
Deal News | Jan 03, 2025 | Norges Bank Investment Management (NBIM)
Norges Bank Investment Management (NBIM), the fund management division of Norges Bank, has made a significant investment in the US logistics real estate sector by acquiring a 45% stake in a portfolio valued at $3.265 billion. The purchase agreement, finalized on December 20, 2024, and completed on January 1, 2025, involved a payment of $1,070 million by NBIM to the Canada Pension Plan Investment Board (CPP Investments), the seller of the portfolio. Goodman, which already owned 55% of the portfolio, will continue to hold its share and manage the assets on behalf of the joint venture. This portfolio consists of 48 buildings and five land plots, with a total leasable area of 1.3 million square meters, and is situated in premium locations. NBIM, under the leadership of Per Loken, is poised to enhance its logistics real estate holdings through this strategic investment. Edward Lerum, Head of Global Logistics Real Estate at NBIM, expresses optimism regarding the investment's growth potential, particularly due to the limited availability of new supply in these prime locations. This move aligns with NBIM's long-term investment strategy in real estate and reflects confidence in the future performance of the logistics sector.
Sectors
- Real Estate
- Logistics and Supply Chain
Geography
- United States – The logistics portfolio is based in the United States, where Norges Bank Investment Management is expanding its real estate exposure.
- Canada – The Canada Pension Plan Investment Board is the seller of the logistics portfolio, indicating cross-border investment activities.
- Norway – Norges Bank Investment Management, based in Norway, is the buyer, reflecting Norway's global investment reach.
Industry
- Real Estate – The article discusses an investment in a logistics real estate portfolio, highlighting this sector's importance to the investment strategy of Norges Bank Investment Management.
- Logistics and Supply Chain – The investment pertains to logistics facilities, indicating a focus on the growing need for supply chain infrastructure.
Financials
- 1,070 million dollars – The amount paid by Norges Bank Investment Management for a 45% ownership in the logistics portfolio.
- 3,265 million dollars – The total valuation of the logistics real estate portfolio.
- 888 million dollars – The existing debt encumbering the logistics portfolio.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Norges Bank Investment Management | Buyer | Company | The investment management division of Norges Bank, responsible for managing the portfolio acquisition in the US logistics sector. |
| Canada Pension Plan Investment Board | Seller | Company | The vendor selling its stake in the logistics portfolio to Norges Bank Investment Management. |
| Goodman | Asset Manager/Partner | Company | Already owning a 55% stake, Goodman will continue to manage the logistics assets as part of its joint venture obligations. |
| Per Lken | Global Head of Unlisted Real Estate | Person | An executive at Norges Bank Investment Management, overseeing and commenting on the investment strategy. |
| Edward Lerum | Head of Global Logistics Real Estate | Person | A senior figure at Norges Bank Investment Management, articulating the growth prospects and strategic goals of the investment. |