Fund makes new investment in San Francisco
5 September 2014
Norges Bank Investment Management has acquired a 49.9 percent interest in The Orrick Building, also known as Foundry Square II, a 521,000 square foot (48,402 square meters) office property located at 405 Howard Street in San Francisco, in joint venture with TIAA-CREF.
The agreement was signed 11 July 2014, and closing occurred on 4 September 2014.
Norges Bank Investment Management has acquired its 49.9 percent interest in the asset for 139.7 million dollars, equivalent to 860.8 million kroner, valuing the property at 390 million dollars (2,403.1 million kroner). The asset is encumbered with 110 million dollars of existing debt.
The property consists of 95 percent office and 5 percent retail. TIAA-CREF is acquiring a 50.1 percent interest in the asset and will manage it on behalf of the partnership.