Prologis has signed a definitive agreement with Norges Bank Investment Management (NBIM) to form Prologis European Logistics Partners Sàrl, a euro-denominated joint venture.

Prologis European Logistics Partners (PELP) will be a 50:50 JV for the acquisition of a portfolio of distribution facilities wholly owned by Prologis in eleven target European global markets. Upon closing, the venture will acquire a portfolio of 195 properties totalling app. 4.5 mln sqm, with about 75 pct of the properties coming from the former ProLogis European Properties (PEPR) fund and the remaining 25 pct from other Prologis wholly owned assets. The new fund will have an equity commitment of EUR 2.4 bln, which includes an EUR 1.2 bln co-investment by both companies.

The venture has an initial term of 15 years, which may be extended for additional 15-year periods. Prologis will have the ability to reduce its ownership to 20 pct following the second anniversary of closing. According to Prologis, the deal completes its European recapitalisation ahead of schedule.