Norges Bank Makes Strategic Real Estate Investment
Deal News | Dec 16, 2024 | Norges Bank Investment Management (NBIM)
Norges Bank Investment Management (NBIM), as part of its strategic expansion in the logistics sector, has acquired a 49.5 percent stake in a portfolio of logistics properties from Prologis. The transaction was finalized on December 13, 2024, with NBIM investing €166 million. This investment, which is unencumbered by debt, was composed of two acquisitions: €73 million was spent on two properties in the UK, and €78 million on five properties across Continental Europe. Prologis retains the remaining 50.5 percent stake and will continue to manage the assets. The logistics portfolio comprises a total leasable area of 201,000 square meters. Norges Bank Investment Management operates as part of Norges Bank's fund management division, handling unlisted investments in sectors like real estate and renewable energy infrastructure through specialized subsidiary structures.
Sectors
- Real Estate
- Logistics
Geography
- United Kingdom – Part of the investment includes properties located in the UK, highlighting the geographic area of NBIM's real estate strategy.
- Continental Europe – The acquisition also involves logistics properties across Continental Europe, emphasizing this region as a part of the investment.
- Norway – Norges Bank, the parent organization of NBIM, is based in Norway, central to the origin of the investment initiative.
Industry
- Real Estate – The article centers on an investment in a logistics real estate portfolio, a common focus for institutional investors like Norges Bank Investment Management.
- Logistics – The specific type of real estate mentioned in the article pertains to logistics properties, indicating a growing interest in this sector due to increasing demand for distribution and warehousing space.
Financials
- 166 million euros – The total investment amount paid by NBIM for a 49.5% stake in the logistics portfolio.
- 73 million British pounds – The payment in British pounds for the properties located in the UK, part of the larger investment.
- 78 million euros – The amount paid in euros for the properties located in Continental Europe.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Norges Bank Investment Management (NBIM) | Buyer | Company | The fund management division of Norges Bank responsible for acquiring the 49.5% stake in the logistics portfolio. |
| Prologis | Seller | Company | The company selling the logistics portfolio and retaining a 50.5% stake while managing the assets. |
| Norges Bank | Parent Organization | Company | The central bank of Norway, whose fund management division, NBIM, conducts the investment. |