Norwegian Sovereign Wealth Fund Keeps Diversifying Portfolio

The Norwegian sovereign wealth fund invested in real estate in London, buying a 343 million-pound asset in the Mayfair district. 

According to Norges Bank Investment Management, the fund bought a 57.8% share in estate between Regent Street and Bond Street from the Church Commissioners for England.

‘The consideration is net of the fund’s £36.1 million share of total existing debt. The Crown Estate purchased a 6.4 percent stake at the same time for £38 million. Contracts were completed on 8 August 2014,’ reads a note released on Sunday.

The remaining interest are controlled by the UK Secretary of Defence (10%), The Crown Estate (6.4%) and members of the Pollen family (25.8%). 

The Pollen Estate holds over 500,000 sq ft of office stock. 

The acquisition is relevant as it shows how Norway’s sovereign wealth fund is diversifying its portfolio. The gas industry remains a central chunk of it, but investments in other sectors are on the rise.