Norwegian govt pension fund sells Spanish property for €25.1m

Norges Bank Real Estate Management has sold a 50 per cent interest in two logistics properties in Spain for €25.1m, on behalf of the Norwegian Government Pension Fund Global.

The agreement was signed on 18 December 2015 and completed on 11 February 2016.

Norges Bank Real Estate Management bought the properties in March 2013 for €20.6m and received rental income from the properties during the whole period.

The two properties have a total leasable area in excess of 96,000 square meters. The buildings are located in Zaragoza and Valencia in Spain.

The sale of the Spanish properties is a turn away from the fund’s strategy to invest in real estate.

Last year, the fund opened dedicated real estate offices in Tokyo and Singapore. In addition, the fund’s share of assets invested in real estate climbed 3.1 per cent , to which its CEO Yngve Slyngstad said it made “fewer, but larger investments”.

In March this year, the fund announced it returned 2.7 per cent, equivalent to DKK334bn, in 2015.

Equity investments returned 3.8 per cent and fixed-income investments 0.3 per cent. The overall return on the fund’s equity and fixed-income investments was 0.5 percentage point higher than the return on the benchmark indices. Real estate investments returned 10 per cent.

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