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Fund to Make First Property Investment in France

The Norwegian Government Pension Fund Global agreed today to buy 50 percent of seven properties in and around Paris from AXA Group, the fund’s first real estate investment in France.

5 July 2011

The purchase price is set at 702.5 million euros, or approximately 5.5 billion Norwegian kroner. The properties constitute about 156,000 square metres of largely office space in the western and central business districts of Paris. NBIM and AXA will form a joint venture where AXA Real Estate provides asset management services.

“The investment is in line with our strategy to initially invest in the biggest European property markets before expanding into other regions,” says Karsten Kallevig, chief investment officer for real estate at Norges Bank Investment Management (NBIM), which manages the fund. “It also reflects our preference to form partnerships with investors that both own and operate properties.”

AXA will hold the remaining 50 percent of the properties on completion of the transaction, which is expected in the third quarter. The properties are as follows:

  • 12-14 Rond Point des Champs-Elysées, Paris 8e
  • 1-3 / 2 rue des Italiens, Paris 9e 
  • 16 avenue Matignon, Paris 8e 
  • 24-26 rue Le Peletier, Paris 9e 
  • Meudon Campus, 92 Meudon 
  • OPUS 12, 92 La Défense 
  • 31-33 rue de Verdun, 92 Suresnes

Norges Bank Investment Management (NBIM) is the asset management arm of the Norwegian central bank. NBIM manages the Government Pension Fund Global. The fund got a mandate in March 2010 to gradually invest as much as 5 percent of its assets in real estate through a corresponding decrease in fixed-income investments. The fund had a market value of approximately 400 billion euros at the end of March 2011 and consisted of 61.3 percent equities, 38.6 percent fixed-income securities and 0.1 percent real estate.

Press inquiries may be directed to
Communications Adviser Bunny Nooryani, tel: +47 48 02 75 75

Photo of  Rond Point des Champs-Elysées
12-14 Rond Point des Champs-Elysées

Photo of Meudon Campus, 92 Meudon
Meudon Campus, 92 Meudon  Meudon Campus, 92 Meudon 
Photo 1-3 rue des italiens

31-33 rue de Verdun, 92 Suresnes

1-3 rue des italiens
1-3 / 2 rue des Italiens, Paris 9e 

Photo of OPUS 12, 92 La Défense
OPUS 12, 92 La Défense

Phot of 16 avenue Matignon, Paris 8e
16 avenue Matignon, Paris 8e 

Phot of  24-26 rue Le Peletier, Paris 9e
24-26 rue Le Peletier, Paris 9e