Norges Bank Investment Management made a $1.1 billion investment for a 45% share of a U.S.-based logistics real estate portfolio, according to a news release.
NBIM will acquire the stake from the Canada Pension Plan Investment Board, Toronto, which had total assets of C$675.1 billion ($499.5 billion) as of Sept. 30.
The logistics portfolio is made up of 48 buildings across Southern California, New Jersey, and Pennsylvania. NBIM will enter into a joint venture with Australian property firm Goodman Group, which already owned 55% of the portfolio. Goodman will also perform the asset management on behalf of the joint venture.
"We are excited about growing our logistics real estate exposure and entering into a partnership with Goodman," said Per Loken, global head of unlisted real estate at NBIM, in the news release. "This investment aligns with our long-term strategy, and we think now is a good time to invest."
The agreement was signed Dec. 20 and completed Jan 1.
NBIM manages the assets of sovereign wealth fund Government Pension Fund Global, Oslo, which totaled 19.24 trillion Norwegian kroner ($1.83 trillion) as of Sept. 30.
On Jan. 3, CPPIB also confirmed in a separate news release that it sold its 49% interest in four real estate joint venture projects with Chinese real estate company Longfor Group Holdings to an affiliate of Dajia Insurance Group. Net proceeds to CPPIB from the sale will be about C$235 million.
"These transactions are not part of a wider investment shift, but rather represent an opportunity to crystallize returns as part of a normal portfolio rotation," a CPPIB spokesperson said. "As the fund pursues both relative as well as absolute returns in portfolio design and construction, it results in shifts across asset and geographical allocation."
