New York-listed Prologis may reduce its 50% stake in the European logistics joint venture created with Norway's NBIM to 20% in March 2014.

New York-listed Prologis may reduce its 50% stake in the European logistics joint venture created with Norway's NBIM to 20% in March 2014.

Prologis and Norway's giant oil pension fund announced on Tuesday that they have completed the €2.4 bn transaction which was initially publicised late last year.

Under the deal, the Prologis European Logistics Partners (PELP) joint venture has acquired a portfolio of 4.5 million m2 comprising 195 Class-A logistics facilities wholly owned by Prologis. The portfolio mainly comprises assets held by the former Proogis European Properties (PEPR) fund.

PELP is structured as a 50/50 partnership with an equity commitment comprising a €1.2 bn co-investment by both NBIM and Prologis.

The venture may grow through acquiring strategic portfolios in target markets and, where appropriate, properties that complement the existing asset base. The venture has an initial term of 15 years, which may be extended for additional 15-year periods.

‘Our partnership with Norges Bank is built upon a mutual, long-term investment perspective which is measured in decades,’ said Hamid Moghadam, chairman and CEO of Prologis. ‘This venture underscores the strengthening of Europe's industrial real estate market and the investment potential of our high-quality portfolio.’