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Norway’s GPFG announces first property investment

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Yngve Slyngstad

According to the press release, “Norges Bank, which manages the Norwegian Government Pension Fund Global, has agreed to buy a 150-year lease on a 25 percent stake in The Crown Estate’s Regent Street properties in London. The purchase price is expected to be £448 million, or approximately 4.2 billion Norwegian kroner. A final agreement and completion of the transaction is anticipated by the end of March 2011, giving the fund its first investment in real estate after the Norwegian government on 1 March gave permission to invest in the asset class.

“A move into real estate will strengthen the fund, which today is solely invested in stocks and bonds,” says Yngve Slyngstad, chief executive officer of Norges Bank Investment Management (NBIM).

Regent Street is one of London’s busiest shopping streets with retailers including Apple, Burberry, Banana Republic and Hamleys. The properties in the Regent Street portfolio, which consists of 113 buildings spread over 39 blocks, are owned by The Crown Estate on behalf of the United Kingdom. The partnership would give the fund 25 percent of the properties’ net income, which would mainly come from office and retail space rent. The Crown Estate would retain 75 percent of the income.

“The Crown Estate would continue to be responsible for the management of the portfolio, while NBIM would take part in significant capital decisions,” says Slyngstad.

The Crown Estate has since 2002 been implementing a regeneration programme in Regent Street to transform it into an international destination for business and retail. Further development of the area is set to continue. The fund got a mandate on 1 March to gradually invest as much as 5 percent of its assets in real estate through a corresponding decrease in fixed-income investments. Real estate investments will mainly be in unlisted real estate, well-developed property markets and traditional property types, initially in Europe. The fund’s investments consisted of 60 percent equities and 40 percent fixed-income securities at the end of the third quarter.”

Source: NBIM Press Release

Chinese SAFE Investment Company Sells Off Stake in Ropemaker Place

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Singapore-listed property company Ho Bee Land, acquired a prime office at 25 Ropemaker Place, EC2, located in the City of London, for £650 million. The property went up for sale in December 2017.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Norway SWF Adds to Existing Investment in Central London

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On June 15, 2018, Norges Bank Real Estate Management, the manager of Norway Government Pension Fund Global, acquired 25 percent of a long leasehold interest in 30 Warwick Street in central London, in joint venture with The Crown Estate. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Crown Property Bureau Moves Assets to Thailand King Under 2017 Law

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In December 2016, Crown Prince Maha Vajiralongkorn became King of Thailand, succeeding his father King Bhumibol Adulyadej who passed away in October 2016. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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