Norway SWF Looks to US Real Estate in 2013

Norway’s Government Pension Fund Global (GPFG) plans to invest in U.S. real estate by the end of next year at the latest. The GPFG understands the United States has the biggest real estate market and exposure to the American market is a necessity.

Already Norway’s sovereign wealth fund has made purchases in institutional real estate in Paris and London. The sovereign wealth fund sees sprouts of recovery in U.S. real estate values. Investment allocation to U.S. real estate will be in well-developed markets such as New York City. Properties will be offices and retail establishments located in core real estate markets.

For the most part, Norway’s sovereign fund is carefully treading real estate investing. Their 5% allocation to real estate will not be deployed in one time frame. The fund eventually wants exposure to Asian property markets as well, but that will follow expansion in U.S. markets.

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