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Norway’s $1.4 Trillion Sovereign Wealth Fund Lines Up More Unlisted Property Deals

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Norway’s $1.4 trillion sovereign funds is queuing up more deals for its unlisted property after acquiring a stake in the U.S. office, according to a report by Bloomberg on Tuesday.

Norges Bank Investment Management paid $391.9 million last week for a 47.5% stake in a joint venture with MetLife Investment Management holding the One Memorial Drive office property in Cambridge, Massachusetts.

John McCarthy, head of the fund’s U.S. unlisted real estate investments, stated that the slump in listed property prices triggered by pandemic made the investor reallocate “a significant amount” as the private market “did not move nearly as quickly.”

The fund started investing in unlisted real estate in 2020, first on London’s Regent Street, before expanding into the US market, which now accounts for an estimated 50% of its $32.5 billion portfolio focusing on office, retail, and logistics properties.

Investments in unlisted real estate generated 4.6% in the first half, while the listed property business, at 212 billion kroner, yielded 14% in the same period. EUR USD up +0.23%

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