NBIM, Prologis JV buys UK portfolio for £248m

As part of its plan to buy €2.4 billion of stabilized industrial assets in Europe, a venture between the manager of Norway’s sovereign wealth fund and Prologis Europe has bought 11 distribution assets in the UK from LondonMetric Property.

As part of a plan to own a significant portfolio of European industrial properties, Prologis Europe and Norges Bank Investment Management (NBIM), the manager of Norway’s Government Pension Fund Global, have jointly purchased 11 distribution assets from LondonMetric Property, a UK REIT, for £247.56 million (€290.98 million; $380.42 million). 

According to a statement issued by LondonMetric, 10 of the assets were held in a 50:50 joint venture with Green Park Investments. The remaining asset, the former Focus Distribution Centre at Tamworth, was wholly owned by LondonMetric. The UK REIT was paid £138 million in the deal, while the remainder of the proceeds went to Green Park.

The assets comprising the 2.4 million-square-foot portfolio are fully occupied, primarily by third-party logistics operators. Jones Lang LaSalle advised Prologis and NBIM on the transaction.

This transaction is part of a 50:50 partnership announced late last year, whereby Prologis and NBIM plan to own €2.4 billion ($3.1 billion) of stabilized industrial assets in Europe. Each partner contributed €1.2 billion in equity to the venture, which has an initial term of 15 years and may be extended for additional 15-year periods.

Known as Prologis European Logistics Partners, the venture was seeded with a portfolio of 195 properties, totaling approximately 49 million square feet, in 11 target market throughout Europe. About 75 percent of the properties came from the former ProLogis European Properties fund, with the remaining 25 percent comprising other assets in Europe wholly owned by Prologis.