Norges Bank Investment Management (NBIM), which manages Norway's oil-fuelled pension fund, reported a 1.54% return on its real estate investments in the third quarter of this year.
Norges Bank Investment Management (NBIM), which manages Norway's oil-fuelled pension fund, reported a 1.54% return on its real estate investments in the third quarter of this year.
The €700 bn Government Pension Fund Global managed by NBIM has been buying property in Europe and the US over the last quarter.
It has said that it will build up the real estate portion of its portfolio to as much as 5% of the value of the fund in the next few years.
‘Our strategy is to invest in a limited number of cities around the world and concentrate on office and retail premises,’ said Yngve Slyngstad, CEO of Norges Bank Investment Management. ‘The purchases in the third quarter were in keeping with this strategy.’
Recent deals included taking a 49.9% stake in the 43,000 m2 office property at 800 17th Street in Washington, DC. Norges paid $195.6 mln (€153 mln) for its share. TIAA-CREF owns the remaining 51.1% and will manage the property.