Norway’s $1 trillion sovereign wealth fund has invested in Asian property for the first time.
Norges Bank PROPERTY Operations, which manages the sovereign fund, the world’s largest, said Thursday that it all had signed an contract to buy a good 70 percent stake in five properties in Tokyo, Japan.
The fund will pay 92.75 billion Japanese yen ($820 million), regarding to a statement.
“This can be the fund’s first real estate investment in Asia and is in line with our strategy to create a high-top quality, global portfolio,” Karsten Kallevig, ceo of Norges Bank PROPERTY Management, said.
In what is referred to as a joint venture, Tokyu Land Corporation will find the remainder together with manage the properties.
The venture plans to finance almost half of the manage a bank loan.
According to its web page, Norway’s sovereign prosperity fund is 65.9 percent invested in equities, 31.6 percent in fixed income and 2.5 percent in unlisted property.