Norway's Government Pension Fund Global leads a slew of cash-rich sovereign wealth funds that were the most active players in the largest office investments in Europe during 2012.

Norway's Government Pension Fund Global leads a slew of cash-rich sovereign wealth funds that were the most active players in the largest office investments in Europe during 2012.

Norway's oil fund invested at least €1.5 bn in three of the largest office real estate investments last year, according to data compiled by PropertyEU Research.

The largest single deal was the sale-and-leaseback of Credit Suisse's Uetlihof complex in Zurich for €830 mln.

The deal was a departure from the strategy pursued so far by Norway's mammoth sovereign wealth fund in two regards. Previously the fund, which is managed by Norges Bank Investment Management, had concentrated on joint venture acquisitions in Paris and London, and more recently Berlin.

But as the Swiss deal was a sale-and-leaseback there was less need for a strong operational partner to asset manage the property. The transaction was also the first deal outside of Europe's core markets of UK, Germany and France, allowing Norges to diversify further in the European Union.

Norges also entered Germany for the first time in 2012, in co-operation with longstanding joint venture partner AXA Real Estate. They acquired two office-led assets in the German capital and Frankfurt on a 50:50 basis for €780 mln. The fund also expanded its Paris holdings through a 50:50 partnership on a €550 mln portfolio owned by Generali. The joint venture later acquired a trophy office building for an estimated €80 mln.

Alongside the Norwegian fund, sovereign wealth funds from Asia and the Middle East were the most active group involved in the largest office deals of 2012.

The 25 largest office deals in Europe for which the price was known had an aggregate volume of €11 bn. Of this sovereign wealth funds were responsible for at least €5 bn.

In some cases the funds acted directly as when Malaysia's Permodalan Nasional Berhad acquired 90 High Holborn and One Exchange Square, London from German fund manager Kanam for €660 mln. In other cases, the funds acted through intermediaries. For instance, Invesco Real Estate picked up Cité du Retiro and Néo in Paris from Kanam on behalf of a Middle Eastern fund for some €600 mln.

PropertyEU's Deal Watch is published weekly for subscribers only with updates and rankings of the latest transactions.

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