Finance
Norway’s sovereign wealth fund buys 98% of US office building for $217 million
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STOCKHOLM (Reuters) – Norway’s sovereign wealth fund said on Tuesday it has bought a 97.7% stake in an office property in Menlo Park in the San Francisco bay area for $217 million, in a joint venture with U.S.
STOCKHOLM (Reuters) – Norway’s sovereign wealth fund said on Tuesday it has bought a 97.7% stake in an office property in Menlo Park in the San Francisco bay area for $217 million, in a joint venture with U.S. real estate investment firm DivcoWest.
Norges Bank Investment Management (NBIM), the world’s largest sovereign wealth fund, said it bought the stake from a joint venture between Clarion Partners and Invesco Real Estate.
The asset is unencumbered by debt, and no financing was involved in the transaction,” it said in a statement.
It said the purchase price values the property at $222 million.
DivcoWest bought the remaining 2.3% of the property and will perform the asset management for the property on behalf of the joint venture, NBIM said.
(Reporting by Anna Ringstrom, editing by Terje Solsvik)
A sovereign wealth fund is a state-owned investment fund or entity that is used to manage the national savings for the purposes of investment. These funds invest in various assets including stocks, bonds, real estate, and other financial instruments.
Asset management is the systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner. It involves managing investments on behalf of clients to achieve specific financial goals.
A real estate investment involves purchasing property with the intention of generating income or profit. This can include residential, commercial, or industrial properties.
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