Norway’s sovereign wealth fund has entered into a joint venture with Oxford Properties for the first time, investing US$74m (€65m) in a new office building in Washington DC.
Norges Bank Real Estate Investment Management — the property investment arm of Norges Bank Investment Management (NBIM), which manages Norway’s NOK8.1trn (€851bn) Government Pension Fund Global (GPFG) — has bought a 49% stake in 900 16th Street in the US capital city.
Oxford Properties, a subsidiary of Canadian pension fund OMERS, has acquired the remaining 51%, and will manage the property.
The two parties bought the building from ICG 16th Street Associates, an affiliate of the JBG Companies and ICG Properties, which jointly developed the property.
The deal values the building, which has around 117,000sqft of office space and 4,000sqft of retail space, at US$151m.
NBIM said the property was unencumbered by debt, and no financing was involved in the deal.