Norway’s Norges Bank Buys 45% Stake in U.S. Industrial Portfolio for $1.1B – Commercial Observer

Norway’s central bank has made a 10-figure investment in a U.S. industrial and retail portfolio controlled by an Australian development and investment firm, underscoring the global investor appetite for such spaces. 

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Norges Bank Investment Management paid $1.07 billion for a 45 percent ownership stake in a 48-building logistics portfolio controlled by the Sydney-based Goodman Group. Forty of the 48 properties are in Southern California, with the remainder in New Jersey and Pennsylvania. 

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The Canada Pension Plan Investment Board (CPP Investments) sold the minority stake of a 55-45 ownership split with Goodman, dubbed the Goodman North American Partnership in 2012. Goodman will continue its role as asset manager of the properties, the total value of which Norges estimates at $3.23 billion, with $888 million of existing debt. 

“The proceeds from this transaction … give us the ability to redeploy capital towards new investment opportunities as our portfolio continues to grow and evolve alongside the global market,” Max Biagosch, global head of real assets & head of Europe for CPP Investments, said in a statement.

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Of the Southern California buildings, the majority are clustered into specific campuses dotted around Los Angeles County, Orange County and the Inland Empire. They include Goodman Commerce Center (GCC) Eastvale (which at over 3.2 million square feet of industrial, retail and flex space is one of the largest mixed-use developments in the region), Goodman Logistics Center (GLC) Fontana, GLC Santa Fe Springs, GLC Compton, GLC El Monte and GLC Fullerton. 

“The portfolio exemplifies high-quality buildings in excellent locations,” added Edward Lerum, head of global logistics for Norges Bank. “We have long-term conviction in the investment, and we also see appealing growth potential, given the restrictions on new supply in these locations.”

Norges Bank’s investment comes less than a year after L.A.-based logistics giant Rexford Industrial Realty spent $1 billion to acquire 48 properties across L.A. and Orange counties from Blackstone. The 3 million square feet in that portfolio was 98 percent leased at the time of the sale.

Nick Trombola can be reached at [email protected].