Sunday, July 31, 2011

Norway Oil Fund Invests In Further London Properties

Norway's sovereign wealth fund has taken another step towards its target of investing 5% of its assets in property by buying a stake in two central London addresses for GBP7 million.

Norway's Pension Fund Global, sometimes referred to as the oil fund, bought a 25% stake in 4 Conduit Street and 1 Maddox Street, alongside a 75% investment by the U.K. Crown Estate, with the total investment by both parties valued at GBP28 million, according to a statement from the Crown Estate Sunday.

The oil fund was set up in 1990 to safeguard Norway's oil wealth for future generations and has a market value of more than $500 billion. Last year, the Norwegian government approved a request by the fund to gradually invest up to 5% of its total assets--roughly $29 billion--in global real estate.

In November 2010, the fund made its first investment in property, buying a 150-year lease on a 25% stake in the Crown Estate's portfolio of properties on Regent Street in London for around GBP450 million.

The fund agreed in July to buy a 50% stake in seven properties in and around Paris from AXA Group (CS.FR), marking the fund's second real-estate investment and its first in France.

Source: www.nasdaq.com

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