Norway's Central Bank (Norges Bank) (photo), which manages the Norwegian Government Pension Fund Global, has agreed to buy a 150-year lease on a 25 percent stake in The Crown Estate’s Regent Street properties in London.
The purchase price is expected to be £448 million, or approximately 4.2 billion Norwegian kroner. A final agreement and completion of the transaction is anticipated by the end of March 2011, giving the fund, also called the National Oil Fund, its first investment in real estate after the Norwegian government on 1 March gave permission to invest in the asset class.
“A move into real estate will strengthen the fund, which today is solely invested in stocks and bonds,” says Yngve Slyngstad, chief executive officer of Norges Bank Investment Management (NBIM).
Regent Street is one of London’s busiest shopping streets with retailers including Apple, Burberry, Banana Republic and Hamleys. The properties in the Regent Street portfolio, which consists of 113 buildings spread over 39 blocks, are owned by The Crown Estate on behalf of the United Kingdom.
The partnership would give the fund 25 percent of the properties’ net income, which would mainly come from office and retail space rent. The Crown Estate would retain 75 percent of the income.
“The Crown Estate would continue to be responsible for the management of the portfolio, while NBIM would take part in significant capital decisions,” says Slyngstad.
The Norwegian fund got a mandate on 1 March to gradually invest as much as 5 percent of its assets in real estate through a corresponding decrease in fixed-income investments. Real estate investments will mainly be in unlisted real estate, well-developed property markets and traditional property types, initially in Europe. The fund’s investments consisted of 60 percent equities and 40 percent fixed-income securities at the end of the third quarter.
(NRK/Press release)
The International Monetary Fund (IMF) has presented its views on the Norwegian economy and Norwegian economic policy, and concludes that the Norwegian economy continues to perform well.(Photo: Finance Minister Sigbjørn Johnsen)..
Secretary General of NATO, Anders Fogh Rasmussen, met with Prime Minister Jens Stoltenberg in Oslo on Wednesday to discuss NATO's future and Norway's involvement in the Ocean Shield Operation.
..
The SAS Group has announced that it has signed an agreement to sell 80% of its shares in its domestic airline Widerøe's Flyveselskap AS to a group of Norwegian investors.
..
Norwegian energy provider Statoil has reported a first quarter 2013 net operating income of NOK 38.0 billion, compared to NOK 57.9 billion in the first quarter of 2012. Adjusted earnings were NOK 42.4 billion, compared to NOK 59.2 billion in the first quarter of 2012.
..
In Pakistan, Norway's Telenor and Tameer Bank have introduced the opportunity to earn interest on savings by using the mobile phone.
..
Low-fare airline Norwegian is considering registering its new Dreamliner long distance aircraft in Ireland, in order to cut staff and operating costs, and increase profits.
..
Minister of International Development Heikki Holmås says Norway is the first country in the world to review its loans to developing countries, in line with the UN Guiding Principles on foreign debt and human rights.
..
Foreign Miinister Espen Barth Eide (photo) says he regrets that Salam Fayyad is resigning as Prime Minister of Palestine.
..
Speaking at ILO's regional conference in Oslo, Norwegian Priem Minister Jens Stoltenberg said the crisis in Europe is dramatic. A financial crisis has now turned into a jobs crisis...
Foreign and domestic demand, excluding petroleum activities, grew modestly in the 4th quarter of 2012. The gross domestic product (GDP) of mainland Norway was up 0.3 per cent in the 4th quarter.
..
The return on the Norwegian Government Pension Fund Global, also known as the National Oil Fund, was in 2012 13.4 percent, the fund's second best performance ever.(Photo: Fund manager Yngve Slyngstad)
..
Swissport International Ltd. and Scandinavian Airline Systems (SAS) have announced they have signed a Letter of Intent, with the aim for Swissport to take over SAS ground handling services.
..
