Norges Bank Real Estate Management is taking a 44% stake in two Kilroy Realty Corporation companies that own office properties in San Francisco.

The real estate arm of the NOK7.2trn (€NOK769bn) Government Pension Fund Global, Norway’s sovereign wealth fund, is investing $452.9m (€401.5m), valuing the two properties at $1.15bn.

The properties, at 100 First Street and 303 Second Street, are in San Francisco’s SoMa (South of Market Street) district.

Norges said the 100 First Street deal closed this week, with 303 Second Street scheduled to close in the fourth quarter of 2016.

The property at 303 Second Street is encumbered by $125.8m of existing debt.

Both offices were previously wholly owned by Kilroy Realty Corporation, which is retaining a 56% share in the joint ventures and will continue to manage the properties.

100 First Street comprises 466,000 sqft and 303 Second Street comprises 747,000 sqft.

The properties include 94% rentable office space and 6% rentable retail space.