The largest owner of distribution centers in the U.S. just trimmed its portfolio.
Prologis has sold a $1.1B industrial portfolio it owned in a joint venture with Norges Bank Real Estate Management, the real estate arm of Norway's sovereign wealth fund, to Singapore-based Mapletree Investments, Reuters reports.
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Of the properties included in the sale, 40 are located in the U.S. and 46 are spread across Europe, CoStar reports. The American properties are distributed between the Seattle, Chicago and Dallas areas and total 6.6M SF, and the European properties are mainly concentrated in Hungary, Poland and France. Those properties total 9.9M SF, bringing the total portfolio up to 16.5M SF, plus 144 further acres of land, according to CoStar.
Prologis owned 55% of the U.S. portfolio involved in the sale and 50% of the European portfolio, with Norges Bank accounting for the remaining ownership stake in both. Prologis Chief Investment Officer Michael Curless told CoStar that the deal "effectively completes" the REIT's most recent sell-off of properties it deemed not part of its core strategy.
The disposition of assets occurred not long after Prologis' $8.4B acquisition of DCT Industrial, which added 71M SF of property in the U.S. to its portfolio. A significant chunk of that square footage is located in California, which Prologis identified as a key logistics market with high rents and higher barriers to entry for new construction.
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