OSLO, Nov 25 — Norway’s sovereign wealth fund and property investment group Prologis Inc have agreed to jointly buy a US$1.99 billion logistics real estate portfolio, Norges Bank Investment Management (NBIM) said in a statement.

"The portfolio consists of 127 properties located across multiple US markets, including Southern California, San Francisco Bay Area, Seattle and Dallas,” it added.

NBIM, which manages the world’s largest sovereign wealth fund with assets of some US$1.1 trillion, paid US$896 million for a 45 per cent stake in the portfolio, while Prologis will own the remaining 55 per cent and manage the properties.

The Norwegian fund invests in foreign bonds, stocks and real estate.

In real estate, it concentrates on two types of investment: logistics centres near major cities which benefit from the growth in online shopping, and office buildings in the centre of major cities such as New York, Tokyo, London and Paris.

The acquisition is part of Prologis Inc’s merger agreement to acquire Industrial Property Trust, Inc, NBIM added. — Reuters