San Francisco-based industrial real estate investment trust
), announced the completion of Prologis European Logistics
Partners Sàrl - a $3.1 billion joint venture (JV) with Norges
Bank Investment Management (NBIM). The JV will have an initial
term of 15 years, which may be extended for an additional 15-year
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Prologis European Logistics Partners Sàrl is a 50 / 50 JV with an
€1.2 billion ($1.55 billion) investment by each Prologis and
NBIM. Notably, NBIM is a unit of Norges Bank - the Central Bank
of Norway. It is in charge of the operational management of the
Norwegian Government Pension Fund Global and manages foreign
exchange reserves of Norges Bank.
Upon closure, the JV acquired a portfolio of Prologis'
wholly-owned Class-A logistics facilities in the European
markets. The portfolio consists of 195 properties spanning
approximately 49 million square feet. The JV is expected to
strengthen its portfolio through strategic acquisitions in target
markets to complement the company's existing asset base.
The new JV is a strategic fit as it will enable both the
companies to substantially penetrate the industrial real estate
market of Europe. In addition, the JV deal signifies a major
accomplishment for Prologis, as it completes the company's
European recapitalization ahead of schedule. Further, Prologis
will have the opportunity to reduce its venture ownership to 20%
following the deal's second anniversary.
As a matter of fact, Prologis is significantly capitalizing on
promising opportunities across the globe. With improving property
values and rising institutional demand for quality properties,
the company has witnessed rising customer interest in new
build-to-suit development projects worldwide.
Additionally, leasing decisions that were earlier postponed due
to volatility in the markets are gradually coming off the shelf.
This, in turn, is expected to help augment the company's top
line, going forward and provide upside potential to its stock
Prologis currently holds a Zacks Rank #3 (Hold). Other REITs that
are performing well and are worth a look include
Ryman Hospitality Properties Inc.
Omega Healthcare Investors
), both of which carry a Zacks Rank #1 (Strong Buy) and
Cousins Properties Inc.
) that holds a Zacks Rank #2 (Buy).