UPDATE 1-Norway wealth fund, Prologis in $2 bln real estate acquisition

Norway's sovereign wealth fund and property investment group Prologis Inc have agreed to jointly buy a $1.99 billion logistics real estate portfolio, Norges Bank Investment Management (NBIM) said in a statement.

"The portfolio consists of 127 properties located across multiple U.S. markets, including Southern California, San Francisco Bay Area, Seattle, and Dallas," it added. NBIM, which manages the world's largest sovereign wealth fund with assets of some $1.1 trillion, paid $896 million for a 45% stake in the portfolio, while Prologis will own the remaining 55% and manage the properties.

The Norwegian fund invests in foreign bonds, stocks, and real estate. In real estate, it concentrates on two types of investment: logistics centers near major cities that benefit from the growth in online shopping, and office buildings in the center of major cities such as New York, Tokyo, London, and Paris.

The acquisition is part of Prologis Inc's merger agreement to acquire Industrial Property Trust, Inc, NBIM added.