Norway’s $1t Sovereign Fund Enters Asia With $823m Tokyo Bet

Norway’s sovereign wealth fund is making its first foray into Asian real estate, by buying a majority stake in a set of five retail and office properties in Tokyo for 92.75 billion yen ($823 million).

Norges Bank Investment Management (NBIM), which manages the Nordic nation’s more than $1 trillion pension fund, has formed a joint venture with Japan’s Tokyu Land Corporation to acquire the 12,300 square metre portfolio from Samuel Lee Tak-yee’s Veloqx Group.

NBIM will take a 70 percent stake in the assets while Tokyu Land will pick up the remainder and manage the properties on behalf of the venture.

The deal values the portfolio at 132.5 billion yen ($1.18 billion).

NBIM invests on behalf of the Government Pension Fund Global, which deploys Norway’s horde of surplus oil revenue and is ranked as the largest sovereign wealth fund in the world.

As of September, 2.5 percent of the fund ($25 billion) was invested in unlisted real estate, which is allowed to comprise up to seven percent of the total portfolio.

Ref:  Property Report