Norges Bank Investment Management, the in-house manager of Norwegian sovereign wealth fund Government Pension Fund Global, Oslo, will acquire a 45% stake in a U.S. industrial real estate portfolio.
The manager of the 7 trillion Norwegian kroner ($890 billion) sovereign wealth fund said in a statement Sunday that it will acquire the 45% stake for $2.3 billion from KTR Capital Partners. The acquisition is part of a joint venture with real estate firm Prologis, which will acquire the remaining 55%, and will manage the assets.
The deal is expected to close with 30 to 60 days, said the statement. Law firm Mayer Brown represented Prologis on the deal.
The $5.9 billion portfolio consists of 322 operating properties across 17 U.S. states, with an additional 10 properties under construction.
The sovereign wealth fund's latest annual report showed a 2.2% allocation to real estate as of Dec. 31.
Spokesmen at NBIM could not be reached for comment by press time.