Prologis and Norway’s sovereign wealth fund have bought a massive industrial real estate portfolio by acquiring KTR Capital Partners for $5.9bn (€5.49bn).

The deal is part of an existing joint venture between Prologis and Norges Bank Investment Management, manager of the NOK6.94trn (€824bn) Government Pension Fund Global, to invest in US logistics property.

Prologis US Logistics Venture, 45% owned by the sovereign wealth fund, is taking over 332 properties held in three KTR co-investment funds, Prologis said.

The portfolio spans 60 million sqft of existing industrial space, 3.6 million sqft of space occupied by development projects and 6.8 million sqft of land.

The $5.9bn transaction includes the assumption of approximately $700m of secured mortgage debt, according to Prologis, and the issuance of up to $230m of common limited partnership units in Prologis LP to KTR.

Prologis and Norges Bank operate joint ventures in the US and Europe. Hamid Moghadam, chairman and CEO of Prologis, said the deal would take assets to more than “$11bn on two continents”.

Norges Bank has a real estate allocation target of 5%. At the end of last year, its actual property exposure stood at 2.2%.

For Prologis, a listed developer and manager, the KTR acquisition increases its presence in Southern California, New Jersey, Chicago, South Florida, Seattle and Dallas.

Prologis said the investment “aligns with Prologis’ investment strategy with approximately 95% overlap with its existing US portfolio”.