Norway’s sovereign fund has sold its stakes in two Spanish logistics properties, acquired as part of its joint venture with Prologis.

Norges Bank Real Estate Management, responsible for the Government Pension Fund Global’s property holdings, said the sale of its 50% stake in the two holdings, in the northern city of Zaragoza and port town of Valencia, was finalised in mid-February.

The 50% stake in the properties sold for €25.1m, less than three years after they were acquired for €20.6m, the manager said.

It added that both properties, with 96,000sqm leasable space, had been fully let the entire time the sovereign fund owned them.

The fund remains exposed to the Spanish property market through its joint venture with Prologis, owning stakes in logistics units outside Madrid.

The joint venture grew significantly in size in April last, when it acquired a $5.9bn (€5.5bn) logistics portfolio from KTR Capital Partners.

The Government Pension Fund Global’s unlisted real estate exposure last year returned 10.8%, outperforming its fixed income and equity investments.

It is set to grow property holdings significantly in the coming years, after the Norwegian government decided to grow its allocation from the current 5% target to 7%.

Based on its end-2015 exposure to real estate of 3.1%, the fund will be able to invest at least a further NOK343bn (€35bn) in real estate due to the new 7% target.