Norway’s Sovereign Wealth Fund Partners with Metlife on Real Estate

Metlife, Inc. and Norges Bank Investment Management (NBIM), the manager of Norway’s sovereign wealth fund, have created a joint venture among their affiliates to invest in Class A office properties in select U.S. markets. This is NBIM’s third real estate platform in the United States – in September they entered into a joint venture with Boston Properties, Inc. They also have a real estate platform with TIAA-CREF.

NBIM will hold a 47.5% stake in the joint venture, while Metlife will hold the remaining stake of 52.5%. Metlife, the life insurance company, is a major investor in commercial real estate and mortgages. Metlife will be the asset manager of the platform.

The initial investment in the joint venture is One Financial Center in Boston, a 46-story office tower located on 10 Dewey Street. The tower is near Boston’s South Station. It is marked at a gross value of assets at US$ 700 million. The net purchase price for NBIM’s 47.5% share is US$ 238 million. It was purchased from One Financial Center Equity, LLC, an affiliate of Beacon Capital Strategic Partners V, L.P. Beacon Capital Strategic Partners V, L.P. is a US$ 4.040 billion closed-end commingled real estate fund. Metlife augmented their share of the building it already owns by 2.5%.

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