Norway's US$1 trillion fund scales back appetite for real estate deals
AFTER a decade snapping up US$25 billion of some of the world's toniest properties in London, New York, Paris and other global cities, Norway's US$1 trillion wealth fund is scaling back its appetite for real estate deals. The fund will instead focus more on investing in listed real estate companies, as a way of cutting costs and simplifying its approach after struggling to find properties to buy amid near record prices. It lowered its target for real estate in its portfolio to between 3 and 5 per cent from 7 per cent, meaning its build up has now essentially come to an end. While it doesn't plan to offload the properties it does hold, the loss of such a big buyer will likely be noticed in the biggest real estate markets around the world. The fund owns real estate on Times Square, London's Regent Street and the Champs Elysees, among other key addresses.
Tags : INTERNATIONAL