OSLO Dec 23 Norway's $812-billion sovereign
wealth fund, the world's largest, has agreed to buy a 45-percent
stake in a portfolio of U.S. warehouses valued at $1 billion
from U.S.-based Prologis as the fund builds up its
still-small property assets.
The fund will pay $450 million for the stake, leaving
Prologis with 55 percent to manage the assets.
The deal involves forming a joint-venture between the two
organisations, the second between the two. Last year the fund
agreed to buy from Prologis a 50-percent stake in a portfolio of
European warehouses for 1.2 billion euros.
More deals of this kind are expected in the future, the fund
"Management anticipate adding to the initial portfolio over
time with further investments in the United States," the fund
said in a statement.
The deal includes 66 properties located across eight U.S.
states, in locations such as the San Francisco Bay area,
southern California, Pennsylvania, New Jersey, Nevada, Chicago,
Seattle, Atlanta, and Miami.
The fund's real estate holdings are still small,
representing 0.9 percent of the value of its portfolio at the
end of the third quarter. But its aim is to increase this
proportion to as much as 5 percent.
In the third quarter the fund had some 63.6 percent of its
investments in equities, 35.5 per cent in bonds and the rest in
The transaction is expected to close before Feb. 28 next