Norway’s $1 trillion greatest wealth fund has invested in Asian property for the first time.
Norges Bank Genuine Estate Management, which manages the sovereign fund, the world’s as a wholest, said Thursday that it had signed an agreement to buy a 70 percent involvement in five properties in Tokyo, Japan.
The fund will pay 92.75 billion Japanese yen ($820 million), agreeing to a statement.
“This is the fund’s first real estate investment in Asia and is in order with our strategy to build a high-quality, global portfolio,” Karsten Kallevig, chief supervision officer of Norges Bank Real Estate Management, said.
In what is specified as a joint venture, Tokyu Land Corporation will acquire the residuum as well as manage the properties.
The venture plans to finance almost half of the apportion with a bank loan.
According to its website, Norway’s sovereign richness fund is 65.9 percent invested in equities, 31.6 percent in rooted income and 2.5 percent in unlisted real estate.