Taking a step further toward investments within the logistics sector, the $1.75T Norges Bank Investment Management finalized an agreement with BlackStone to allocate $800M to Blackstone Americas Logistics fund.
According to a press release, NBIM currently has approximately $3.7B in logistics properties across Europe and the U.S. and the commitment to Blackstone’s Core+ North America logistics closed-end fund will further expand “investment opportunities and exposure together with a reputable partner.”
The fund will focus on investments in logistics warehouse properties situated in large population centers, where the usage of properties is crucial for economic consumption and production. The geographic exposure of the fund is focused on U.S. and Canada.
“This opportunity allows us to increase our exposure to the U.S. and Canadian logistics markets and grow our knowledge and experience alongside Blackstone,” said Per Løken, Norges’ global co-head of unlisted real estate.
The fund has 1.9% allocated to unlisted real estate, as of March 31.
Earlier this year, the fund also acquired a 45% interest in a logistics portfolio in the U.S. in a new joint venture with Goodman Group, which comprised of 48 buildings in Southern California, New Jersey, and Pennsylvania. The seller of the portfolio was the Canada Pension Plan Investment Board.
“We have long-term conviction in the investment, and we also see appealing growth potential, given the restrictions on new supply in these locations,” said Edward Lerum, head of global logistics real estate at Norges Bank, in a news release in January.
Most recently, NBIM has also appointed Alexander Knapp as the new global head of real estate. Based in London, Knapp will be responsible for the fund’s listed and unlisted global real estate investments and strategy implementation.
