Norway’s sovereign wealth fund is investing in a $2bn US logistics portfolio acquired through the $4bn merger between Prologis with Industrial Property Trust (IPT) earlier this year.

Norges Bank Investment Management (NBIM), which runs the NOK10.18bn (€1.0trn) Government Pension Fund Global (GPFG), said it is spending $898m to own a 45% stake in a portfolio of 127 assets across the US via its long-term partnership with Prologis.

The 19m sqft portfolio forms part of the $4bn of assets acquired by Prologis when it merged with IPT in July.

GPFG’s investment, which does not involve any debt, values the 19m sqft portfolio at $1.99bn.

The assets are in Southern California, San Francisco Bay Area, Seattle and Dallas.

The agreement was signed on 21 November, and completion is expected in January 2020.

GPFG and Prologis have been investing in industrial markets through a joint venture for several years, including large portfolio and corporate acquisitions. In 2015, the two parties acquired KTR Capital Partners for $5.9bn.

Asked how the size of this purchase compared to previous investment deals the SWF had done, a spokeswoman for NBIM said the fund’s last big logistics deal with Prologis was the purchase of assets from KTR Capital Partners in 2015.