Norway’s US$2 trillion sovereign wealth fund said it bought a 95% stake in an office property located along New York City’s Avenue of the Americas.
The fund, the largest of its kind in the world, is managed by Norges Bank Investment Management (NBIM) on behalf of the Norwegian population.
It said it will be investing US$542.6 million in an office property at 1177 Avenue of the Americas, also known as Sixth Avenue.
A Beacon Capital Partners unit will be buying the remaining 5% of the building on behalf of investors, according to the Norwegian fund.
The deal values the property at US$571.1 million and is expected to be completed in the third quarter of this year.
NBIM and Beacon Capitol Partners will be buying the building from California State Teachers’ Retirement System and Silverstein Properties, who currently own it under a joint venture.
NBIM was set up in the 1990s to invest in excess revenues from Norway’s oil and gas industry and the country’s sovereign wealth and is valued at more than 19.8 trillion Norwegian kroner or US$1.98 trillion.
The fund's main investments are in global equities; however, 1.9% are in real estate.
This includes more than a dozen properties in New York, with holdings in prime Manhattan property like its 45% stake in Times Square Tower and properties on New York City’s Madison Avenue and Broadway.
NBIM’s real estate holdings spanned 15 countries as of 30 June, with 486 investments worth more than US$16 billion in the U.S..
