GPFG builds up NOK 273bn real estate portfolio over 10 years

Norway’s Government Pension Fund Global (GPFG) has a real estate portfolio worth NOK 273bn, 10 years since Norges Bank Investment Management (NBIM) was given a mandate to invest in unlisted real estate.

Following a decade of real estate investments, NBIM has published a management review of its investments. The publication describes its strategy and provides insight into the choices it has made and the experiences it has gained.

The real estate investments have had an annual return of 7.7 per cent after costs. The value of the portfolio, NOK 273bn, makes the fund one the world’s largest institutional investors.

”We have emphasised building a global, but concentrated portfolio of properties. It has been important for the fund to find high-quality properties that we can own for a long time. The decade of investing in real estate has in all respects been a positive one for the fund,” NBIM CEO, Yngve Slyngstad, said.

The report also noted that it has been important for NBIM to build a global organisation with solid real estate expertise, as well as to ensure that it has deep insight into and a clear presence in the markets in which it is invested.

”We have had a gradual build-up. Today, the fund is well positioned as a leading global real estate investor,” NBIM chief investment officer real estate, Karsten Kallevig.

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