Finance
Norway’s wealth fund invests $977 million to take 100% ownership of eight US properties
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OSLO (Reuters) – Norway’s sovereign wealth fund said on Monday it has acquired additional stakes of 50.1% in eight office properties in Boston, San Francisco and Washington D.C. for $976.8 million, raising its ownership in the real estate to 100%.
OSLO (Reuters) – Norway’s sovereign wealth fund said on Monday it has acquired additional stakes of 50.1% in eight office properties in Boston, San Francisco and Washington D.C. for $976.8 million, raising its ownership in the real estate to 100%.
The deal values the portfolio at $1.95 billion, the fund said in a statement.
“In a period of heightened dislocation in the office sector, we see this as an opportune moment to invest,” said Per Loeken, the fund’s global co-head of unlisted real estate.
“By taking full ownership of nearly 3.7 million square feet…, we’re demonstrating our conviction that well-located, high-quality office buildings will continue to deliver long-term value,” he added.
The sellers of the properties were subsidiaries of U.S. insurer TIAA, the fund said.
The U.S. office property market, hard hit since the pandemic by higher interest rates and by many people working from home, has shown signs of bottoming out this year, analysts have said.
The Norwegian sovereign wealth fund, the world’s biggest with assets of $1.75 trillion, invests the proceeds from Norway’s oil and gas industry for future generations.
Some $27 billion of its funds were invested in real estate as of June 30 of this year, spread across some 900 properties in 14 countries, its latest available disclosure showed.
(Reporting by Terje Solsvik; editing by Mark Heinrich)
A sovereign wealth fund is a state-owned investment fund that invests in various assets, including stocks, bonds, real estate, and other financial instruments, to generate returns for future generations.
Real estate investment involves purchasing, owning, managing, renting, or selling properties for profit. It can include residential, commercial, and industrial properties.
Office properties are commercial real estate spaces used for business operations. They can range from single-tenant buildings to large office complexes housing multiple businesses.
A portfolio in finance refers to a collection of financial assets, such as stocks, bonds, real estate, or other investments, held by an individual or institution.
Capital investment refers to funds invested in a business or project for long-term growth. This can include purchasing equipment, real estate, or other assets that will generate future income.
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