The building in the 1177 Avenue of America can be seen in New York.
Adam Rountree | Bloomberg | Getty pictures
Norway's 2 trillion dollars of sovereign asset fund intends to invest more than half a billion dollars in an office building in New York, its latest important investments in first -class real estate.
The fund, the largest of its kind of world, is managed by Norges Bank Investment Management (NBIM) on behalf of the Norwegian population.
NBIM said on Tuesday that there would be 542.6 million US dollars for a share of 95% in an office property in the 1177 Avenue of the America – also known as sixth Avenue.
The purchase will be a joint venture with the real estate investment company Beacon Capital Partners. A subsidiary of Beacon will take over a 5% share of the building, with Beacon monitoring asset management for the 1 million square meter property.
The deal, which evaluates the property at $ 571.1 million, is expected to be completed in the third quarter of this year.
NBIM and BEACON will buy the office building from the California State Teachers' Retirement System and Silverstein Properties that are currently under a joint venture.
The country's sovereign asset fund set up a value of more than 19.8 trillion Norwegian crown (1.98 trillion dollars) in the nineties in the nineties.
While the main focus of the fund of global shares is – with operations in ApplePresent NvidiaPresent TeslaGerman defense giant Rhine metal and chipmaker TSMC – 1.9% of its investments are in real estate.
The portfolio already includes more than a dozen New York building with participation in Prime Manhattan property. The fund has a 45% participation in the Times Square Tower and is invested in real estate in New York Madison Avenue, Broadway and a new investment in Avenue of the Americas.
NBIMS real estate stocks continue to extend in the USA, with the real estate in Boston, San Francisco, Las Vegas and other major cities being used – but its real estate portfolio is concentrated worldwide.
On June 30, the real estate stocks of NBIM included 15 countries with 486 real estate investments worth more than $ 16 billion in the USA.
At the beginning of this year it was announced that the fund would invest 740 million US dollars to buy 25% of a real estate portfolio in Covent Garden District, high in London.
NBIM also agreed to pay 240 million euros ($ 279 million) for a share of 40% of AXA lifestyle housing at the beginning of this year, which has a platform that has and operates student and co-living properties in Spain and France.
In the first half of the year, the fund achieved a return of 4% for its non -listed real estate investments.