Norway’s Sovereign Wealth Fund Remains Committed to Unlisted Real Estate
Posted on 06/05/2020
Norges Bank Investment Management (NBIM), manager of Norway Government Pension Fund Global, released a strategic review of it unlisted real estate investment activities. The report details its activities in various property types and geographies. According to the report, “the unlisted real estate portfolio reached a value of 273 billion kroner after a decade of investments.”
In 2010, NBIM made its first unlisted property investment. NBIM decided early on for a concentrated sector and city property investment framework. Furthermore, NBIM likes to hold meaningful positions in unlisted assets to maintain a level of say in operations.
In 2019, Norges Bank Real Estate Management had grown to 139 people across investment, risk, operations, compliance, and administrative functions. However, in that same year, Norway’s Ministry of Finance announced that it would not follow the recommendation of a committee of experts proposing that a new fund management organization outside Norges Bank be established to manage the fund.
Super Selective
NBIM still plans to make large, unlisted real estate investments, but at a slower pace than anticipated – and within the confines just NBIM.
According to the report, “We have been highly selective. Of the 1,300 investment opportunities presented to us since 2011, we have pursued 218 and ultimately completed only 110.”
