Norway’s $700 b Oil Fund make first US property buy

Tuesday, 12 February 2013 00:00 - - {{hitsCtrl.values.hits}}

OSLO, Feb 11 Reuters: Norway’s $700 billion oil fund made its first property purchase in the United States on Monday, buying minority stakes in five assets for $1.2 billion from financial services firm TIAA-CREF, it said in a statement.

The move is part of an evolution of the fund’s investment strategy as it gradually moves its focus away from Europe and diversifies the type of assets it holds.

It received a mandate from the Norwegian government to expand into U.S. property only in December.

The fund purchased 49.9% stakes in assets in New York, Washington and Boston with TIAA-CREF holding on to 50.1% and managing the properties in partnership with the Norwegian fund.

“The joint venture will seek to acquire additional office properties, primarily in these three cities,” the oil fund said.

“As the world’s largest real estate market, the U.S. will be an important part of the fund’s long-term property portfolio,” said Karsten Kallevig, the head of the fund’s real estate business. “We will initially seek to invest in key east-coast cities.”