Norway’s sovereign wealth fund and property investment group Prologis Inc have agreed to jointly buy a $1.99 billion (£1.55 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.
With Norwegian oil reserves forecast to peak sometime in the 2020s, energy companies are being forced to look at other energy sources, however.
The country’s state-controlled company Equinor, which has just started to tap Norway’s biggest oil field in decades, pledges 15-20 per cent of its total investment will be in renewables by 2030.
“There is no climate change denial in Equinor. They know the world is changing,” said Moe.
But for Sbertoli, Equinor is not moving fast enough. To meet the Paris accord target and bring climate change under control, hydrocarbons have to stay in the ground. “They’re still looking at 80 per cent investment in fossil fuels in 2030. The only way you can do that is in a world where there’s no 1.5 degree target,” he said. “In the big climate conferences, everyone looks to us and how we’re doing a lot of good, but we’re also placing a bet that the world isn’t going to make its climate goals,” said Sbertoli.
In real estate, it concentrates on two types of investment: logistics centres near major cities which benefit from the growth in online shopping, and office buildings in the centre of major cities such as New York, Tokyo, London and Paris.