Steady investment pace
14 March 2017
In 2016, Norges Bank Real Estate Management invested 19.1 billion kroner in unlisted real estate, mainly in the second half of the year.
Today, Norges Bank Real Estate Management has published extended information on the unlisted real estate investments of the Government Pension Fund Global.
The acquisition of the Vendôme Saint-Honoré property in Paris made up 47 percent of the investments in 2016, and two investments on Oxford Street in London made up another 20 percent. At the end of the year, the fund’s unlisted real estate investments were evenly split between Europe and the US.
“We continue to invest in high-quality assets in a limited number of major cities”, says Karsten Kallevig, CEO of Norges Bank Real Estate Management.
The publication contains return data previously published, but provides more detail. It explains our investment approach, geographic focus, and sector-specific activity, as well as a survey of income and costs. The publication also presents Norges Bank Real Estate Management’s approach to areas such as risk management, environmental sustainability and property valuations.
“We aim to be open and transparent by providing a comprehensive overview of the fund’s unlisted real estate investments”, says Kallevig.
Investments in unlisted real estate had a market value of 191 billion kroner and amounted to 2.5 percent of the fund at the end of 2016.
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