NBIM Acquires $1B Stake in Logistics Portfolio From CPP Investments

NBIM takes a 45% interest in a 48-building U.S. portfolio, while the Canadian Pension Plan separately divested from a real estate joint venture in China.

Norges Bank Investment Management, the fiduciary manager of Norway’s $1.74 trillion sovereign wealth fund, announced Friday the acquisition of a stake in a logistics portfolio comprised of 48 buildings across the U.S.

NBIM purchased a 45% stake in the portfolio for $1.07 billion, valuing the portfolio at $3.265 billion. The stake was purchased from the $468.36 billion Canada Pension Plan Investment Board. The other stakeholder in the venture is the Goodman North American Partnership, which will retain its 55% stake in the venture and continue to manage the joint venture’s assets.

According to a news release, the portfolio includes 1.3 million square meters of leasable area across Southern California, New Jersey and Pennsylvania.

On Friday, CPP Investments also announced that the fund had agreed to sell a 49% interest in four real estate projects in China—all joint ventures with Longfor Group Holdings Ltd. The proceeds to CPP Investments will be worth C$235 million ($163 million).

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news. 

The joint ventures included retail malls, along with connected office and residential properties, in Shanghai, Suzhou, Chengdu and Chongqing, according to CPP Investments. A news release noted that CPP still has multiple joint ventures with Longfor, which has partnered with the pension fund since 2014.

The divestment comes at a time when institutional investments in China are being scrutinized by lawmakers and regulators. In 2023, CPP Investments paused making new investments in China, Reuters reported at the time, citing sources. In March 2024, the fund cut 10% of its staff in Hong Kong, according to Bloomberg News, which also cited sources. A CPPIB spokesperson, however, denied that the fund’s investment in China has been halted.

“There’s no pause,” the spokesperson wrote in an email. “Even as we pursue both relative, as well as absolute, returns in portfolio design and construction, it results in shifts across asset and geographical allocation.”