Norges Bank Investment Management (NBIM) has taken full control of a $1.95bn (€1.87bn) portfolio of eight US office properties by acquiring the remaining 50.1% stake from TIAA subsidiaries.
The 3.7m sqft portfolio consists of two properties in Boston, 501 Boylston Street and 33 Arch Street; two in San Francisco, 405 Howard Street and 888 Brannan Street; and four in Washington, DC, 800 17th Street, Evening Star at 1101 Pennsylvania Avenue, Franklin Square at 1300 I Street and 25 Massachusetts Avenue.
NBIM said it paid $976.8m for the remaining half of the portfolio, adding that the 501 Boylston Street asset has $194.9m in existing debt.
Per Løken, the global co-head of unlisted real estate at NBIM, said: ”In a period of heightened dislocation in the office sector, we see this as an opportune moment to invest. By taking full ownership of nearly 3.7m sqft across Boston, San Francisco, and Washington, DC, we’re demonstrating our conviction that well-located, high-quality office buildings will continue to deliver long-term value.”
NBIM makes new investment in Paris
The manager of the NOK19.66trn (€1.66trn) Norwegian Government Pension Fund Global has also agreed to acquire an 80% interest in the Trinity Tower office property in France’s capital for €347.4m from Unibail-Rodamco-Westfield.
NBIM said the 50,000sqm property, which has a total value of €447.5m, will be acquired without debt or financing.
The property’s seller, Unibail-Rodamco-Westfield, will retain a 20% stake and continue to oversee asset and property management services.
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