Looking for a specific product?

Make a search for products & suppliers, articles & news.

The Norwegian Pension Fund buys property i the US

The Norwegian Pension Fund, or National Oil Fund, as it is also known, has for the first time invested in properties in the US, purchased from the US Pension Fund TIAA-CREF.

This is the Fund's first real estate investment outside Europe and is in line with our strategy to build a global real estate portfolio of high quality, says Karsten Kallevig, director of the Pension Fund's real estate investments.

The fund paid 600 million dollars, equivalent to about 3.3 billion NOK for the properties. They are located in New York City, Washington, D.C. and Boston. The seller is the pension fund TIAA-CREF, which will continue to own 50.1 percent of each building. TIAA-CREF will be responsible for management of the properties on behalf of the partnership. The transaction was completed on February 8th.

Two of the buildings are in New York City, two in Washington DC and one in Boston. The five properties have a total of 172,450 square meters of lettable area. The fund's newly acquired buildings are well located. In Washington one of them is locaated just a few blocks from the White House. In New York one of the buildings is right across the street from the landmark New York Public Library, the nation's second largest library.

- As the world's largest real estate market, properties in the US will be an important part of the long-term property portfolio, says Kallevig. He says the Fund in the initial phase, an that they will look for investments in the largest cities on the East Coast, London and Paris.

- We have now found a model for investing in the United States within certain limitations. The model allows the tax and other regulatory requirements are predictable and reasonable for us as investors, says Karsten Kallevig, director of real estate investments in the Pension Fund.

The Fund amounted to USD 3900 billion yesterday. It is consist of  60 percent in equities, 35-40 percent in bonds and up to 5 percent in real estate.

Related news

Latest news

Biggest feed barge delivery ever

At the shipyard in Gdynia Poland, 7 feed barges were recently loaded onboard the vessel Jumbo Vision. The barges are destined for Canada and will be operational this summer. 

Max Planck and CMR cooperation

Scientists at Christian Michelsen Research are currently developing, together with colleagues from the Max Planck Institute for Iron Research (Germany), the Field Kelvin Probe (FKP). This FKP will enable contactless detect...

Consilium equips 48 buildings in Galway, Ireland, with lifesaving panels

Consilium Building Safety has received a strategical order from our Irish distributor...

CADCAM options for the open-minded

“Naval architects log into the Vestdavit digital library and can download exactly what they need within a couple of minutes,

DNV GL COMPIT Award 2017 for smart underwater robotics

Marco Bibuli was announced as the winner of the DNV GL COMPIT Award 2017, which took place in Cardiff this year. The Italian maritime robotics expert, working at the Italian research centre CNR-ISSIA in Genova, was honoure...

Record Number Applications for the Innovation Award!

A total of 28 applications for the Nor-Fishing Foundation Innovation Award, – which includes a check for NOK 100 000 – has been received by the deadline the 1st of May. This represents a 36% increase from record year ...

Midt-Norsk Havbruk and Plastsveis enter into agreement to build smolt facility

“We have followed the development of technology for smolt production carefully for several years,

DNV GL launches on-demand, web-based forecasting at WindPower 2017

Energy traders and plant operators gain online access to hourly forecast data at plant and regional level...

International Quality Awards announced

The Chartered Quality Institute (CQI) launches a series of quality awards designed to recognize the contribution of quality professionals across the globe.