Norges Bank Real Estate Management, which administers Norway's €669 bn national oil pension fund, has said it has written off 5% of the value of its UK portfolio in the wake of Brexit.
'It was pointed out to us that the uncertainty of the assessment of the value (of our UK property portfolio) by external assessors has increased,' deputy chief executive Trond Grande told a news conference.
At the end of July, Norges Bank RE Management purchased an asset from Aberdeen Asset Management in the UK, buying the long leasehold interest in 355-361 Oxford Street in an all-equity deal worth £124 mln (€148 mln).
355 Oxford Street, a 5,500 m2 retail and office building, has a long leasehold from the City of London Corporation with an 139-year unexpired term. The asset is mainly let to Boots, which occupies 2,926 m2 of retail space and 1,347 m2 of offices.
It also owns a 50% stake in the Meadowhall shopping centre in Sheffield, a share of Regent Street and is also invested in the Pollen Estate. Currently about 25% of the fund's real estate holdings are in the UK, with 16% in London.
Norway's state wealth fund, Government Pension Fund Global, which has a market value of NOK 7297 bn (€669 bn) is the largest sovereign wealth fund in the world and is currently invested in 78 countries, which cannot include Norway. 3.1% of the fund is in real estate, as of 30 June 2016.
