The Government Pension Fund of Norway has purchased its first property in San Francisco - a 36-storey building in San Francisco's financial district. The Government Pension Fund, known as the Oil Fund, and real estate partner MetLife announced on Monday afternoon that they have bought two new commercial properties in Washington, DC and San Francisco.
The purchase in San Francisco is the fund's largest investment on the West Coast.
The ownership for the oil fund and MetLife are 47,5 percent and 52,5 percent respectively between the two buildings. Combined, the two properties are valued at approximately $1 billion.
"These two investments have enabled us to expand our partnership with MetLife in accordance with our mission and strategy," says Karsten Kallevig, investment director for property in the Oil Fund.
After these two purchases were made, the Oil Fund has placed approximately NOK 50 billion in real estate. The fund has been given permission by Parliament to invest up to five percent of the total fund in real estate.