Investing

The world's largest sovereign wealth fund just made its first Asia property purchase

Key Points
  • Norway's sovereign wealth fund is worth more than £1 trillion
  • It is now investing in Asian property for the very first time
  • The fund announced recently it will end oil and gas investment
World's largest sovereign wealth fund hits $1 trillion
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World's largest sovereign wealth fund hits $1 trillion

Norway's $1 trillion sovereign wealth fund has invested in Asian property for the first time.

Norges Bank Real Estate Management, which manages the sovereign fund, the world's largest, said Thursday that it had signed an agreement to buy a 70 percent stake in five properties in Tokyo, Japan.

The fund will pay 92.75 billion Japanese yen ($820 million), according to a statement.

"This is the fund's first real estate investment in Asia and is in line with our strategy to build a high-quality, global portfolio," Karsten Kallevig, chief executive officer of Norges Bank Real Estate Management, said.

In what is described as a joint venture, Tokyu Land Corporation will acquire the remainder as well as manage the properties.

The venture plans to finance almost half of the deal with a bank loan.

According to its website, Norway's sovereign wealth fund is 65.9 percent invested in equities, 31.6 percent in fixed income and 2.5 percent in unlisted real estate.