Karsten Kallevig Snags #3 on Public Investor 100-2015
Norway has a lot of dough to spend when it comes to overseas institutional real estate. MIT-educated Kallevig has a big job, being the Norwegian sovereign wealth allocator of a US$ 40 billion exposure to institutional real estate. Kallevig contributes an abundance of Asian and European real estate experience to Norway. He had beginnings working at Goldman Sachs and working for Soros Real Estate Partners, an entity associated with George Soros. He also spent years in Tokyo, working for Grove International Partners.
A downhill skier, Kallevig has mustered up resources, building in-house public investor real estate investment teams so large that they rival the large Canadian pensions and Gulf wealth funds. Under his watch, Norges Bank Investment Management (NBIM) has hired accountants and brought on a number of former real estate bankers. Emphasizing a mantra of structure and focus, Kallevig started with low-hanging fruit: London real estate. NBIM acquired interests in properties on London’s Regent Street, properties in Paris, worked a deal with Prologis (one of the biggest warehouse investors in the world), participated in JVs with Metlife, TIAA-CREF and so on. Despite this, finding suitable investments has been challenging for Kallevig and his team. REITs, pensions, real estate funds, Chinese insurance companies, wealth funds and other investors are vying for well-leased office buildings in core cities. Kallevig and his team have been crafty, hitting up life insurance companies and getting the inside deal on core properties.
Kallevig is on a long journey, but he has the backing from management. For fiscal year 2014, real estate investments generated a 10.4% return, the top performing asset class for Norway’s wealth fund.
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