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12/7/2017, 12:46 PM (Source: TeleTrader)
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Norway's fund buys first real estate assets in Asia

The real estate arm of Norges Bank Investment Management, which runs the Government Pension Fund Global of Norway on behalf of the central bank, will pay ¥92.75 billion ($822.7 million) to Veloqx Group for a 70% share in a commercial property entity in the Shibuya and Minato districts of Japan's capital city. The move, revealed by the sovereign investment vehicle on Thursday, marks its first entry into the sector in Asia.

The transaction will be conducted in a venture with Tokyu Land Corp., which will take the remainder of the assets, the update said and added 49% of the total will be funded from a bank loan. The fund said the deal for 12,300 square meters comes in line with efforts to expand the portfolio to high-quality global investments, and that it intends to continue to cooperate with the partner. The statement includes an estimate that the acquisition will be complete by the end of the year, after which the Japanese company will manage the five buildings in Tokyo.

Breaking the News / IT