Norway’s sovereign wealth fund invests $223m in Manhattan office market

Norges Bank Real Estate Management has bought a 48% interest in a downtown Manhattan office and retail property for Norway’s sovereign wealth fund.

In a deal signed on Sunday, the NOK7.7trn (€829bn) Government Pension Fund Global acquired the stake in 375 Hudson Street in a joint venture with Trinity Church Wall Street and Hines.

Norges Bank paid $223m (€190m) for a 93-year ownership interest in the property.

The seller was Trinity Church Wall Street, and the transaction valued the entire property at $865m.

Hines is to be the operating partner, and has acquired a 1% interest from Trinity Church Wall Street.

Located between King Street and West Houston Street, the property is in the same submarket as the 11 assets already owned in joint venture with Trinity Church Wall Street and Hines.

The building has 1.1m sqft of office and retail space, and has a $400m senior mortgage.